Apollo profits fall by 90 percent in Q3

ERJ staff report (DS)

Gurgaon, India -- Apollo Tyres reports sales down and profits sharply down on slower demand for the three months ended 31 Dec., 2008. The company said consolidated net profit fell to Rs 89 million (Euro 1.4 million), compared with Rs 820 million in the corresponding quarter last year. Consolidated sales fell to Rs 11 000 million (Euro 170 million) from Rs 12 400 million for the three-month period.

Sales in India also tumbled, falling to Rs 9033 million from Rs 9741 million for the three-month period. The sharp decline in sales led to a decline of over 90 percent in net profit, to Rs 55,08 million compared to Rs 621.7 million in the same period a year ago.

Commenting on the results, Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “The past six months have been very challenging for the automotive industry and our results are a reflection of the situation. Production cuts by OEMs have naturally also impacted us. But we see the tide changing gradually and I am looking forward to the last quarter of this year.”