Apollo sales jump by 60% in Q2

ERJ staff report (DS)

Gurgaon, India -- Apollo Tyres said revenues for the six months to 30 Sept 2009 were up by 43 percent, at Rs 36 820 million (euro 533 million). Revenues for the three months to September were up by 62 percent to Rs 20 460 million.

Operating profits also jumped. Consolidated operating profit for the six months more than doubled to Rs 4980 million from Rs2240 million a year previously. In the three months profits rose to Rs 2900 million from Rs 818 million.

Commenting on the performance of the company, Onkar S Kanwar, Chairman, Apollo Tyres, said, “The steady growth achieved by Apollo Tyres despite rising raw material prices reflects the true spirit of our most valuable asset, the employees. In the quarter under review, higher raw material costs were absorbed by the company in order to protect consumers' interest. This was possible only because of our continued emphasis on managing costs and efficiencies internally, which began in the first quarter of the last financial year.”

Looking ahead, Kanwar expressed concerns about the input cost trends. “The volatile raw material prices, especially natural rubber, have been forever a cause of concern for the tyre industry in India. For instance, in the last few months, prices of domestically available natural rubber have gone up substantially, forcing the industry to import it, as the ruling international prices have been significantly lower.”