Apollo Tyres net sales up 21 pc; net profit up 3.8 pc

Mumbai, India - Apollo Tyres Ltd posted a 21 percent rise in net sales and a 3.8 percent boost in net profit for the second quarter of fiscal 2006.

The Indian tyre firm reported net sales for the quarter ending in September of 7673 million rupees (€134.1 million) and a net profit of 193 million rupees.

Between April and September, Apollo reported a 27 percent rise in net sales to 15 246 million rupees and a 2.8 percent rise in operating profit to 1135 million rupees.

“Continued sales growth amidst tremendous cost push from the raw material side has been a very significant achievement,” Apollo joint managing director Neeraj Kanwar said.

“As has been our ability to increase our market share in all the key segments over these past six months. The tapering off in crude and natural rubber prices from the abnormal highs they had shot up to in July and August, is a very positive factor in terms of the entire tyre industry's ability to maintain profit margins and deliver new products to the market.”

Apollo increased its share of the truck and bus market by 2 percent to 28 percent, the passenger car tyre segment by 1 percent to 16 percent and rear tractor segment by 3 percent to 23 percent during the quarter.

“Over the next few months we will be launching ultra-high performance tyres for the upper end of the car market, as well as truck and bus tyres customised to suit our unique Indian customer and infrastructure needs,” Kanwar said.