Companies

Apollo Tyres profit up 11% in June quarter

Our Bureau New Delhi | Updated on January 17, 2018 Published on August 09, 2016

Onkar S Kanwar, Chairman, Apollo Tyres Ltd. (file photo)

Apollo Tyres Ltd on Tuesday reported a consolidated net profit of ₹315 crore for the first quarter ended June 30, up 11 per cent, compared with ₹284 crore in the corresponding period last year.

Net sales of the company also rose 16 per cent during the April-June quarter to ₹3,285 crore against ₹2,832 crore in the same quarter last year.

While Indian operations’ clocked a revenue growth of 6 per cent in the first quarter of the current fiscal year compared with the same period last year, European operations’ revenue grew 10 per cent, the company said.

“Despite the challenges posed by Chinese imports, we have seen increased demand for our products from both original equipment manufacturers and the replacement market across product categories in India,” Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said.

“With the increased truck-bus radial capacity kicking-in the next two-three months, we are well poised for a higher volume growth in the fiscal,” he said.

Some of the new products introduced in the Indian market, including the newly launched two-wheeler tyres, have seen good demand, especially in the replacement market, the company added.

Capacity expansion

Apollo Tyres will be investing close to ₹3,000 crore for doubling the Chennai unit capacity.

Expansion of the Chennai unit to increase the truck-bus radial facility from 6,000 tyres per day to 12,000 tyres per day is currently underway, and the first phase of the project is likely to be completed by October, Kanwar said.

Speaking to reporters prior to the company’s 43rd annual general meeting here, he said entry into the two-wheeler tyre space has made Apollo Tyres a full range player. The company is now producing three-four lakh two-wheeler tyres a month, which have already received an encouraging response from the market.

On the global initiatives, Kanwar said the first lot of tyres from Apollo’s greenfield facility in Hungary is expected to be rolled out early next year. The capacity will then be gradually ramped up over the next year. Once ready, the facility will have the capacity to produce 5.5 million PCLT (passenger car and light truck) and 675,000 HCV (heavy commercial vehicle) tyres.

Shares of Apollo Tyres closed at ₹181.45 on the BSE on Tuesday, up 0.39 per cent from previous close.

Published on August 09, 2016
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