Apollo’s Sales Are Up 17% in 3Q
The highlight of Apollo Tyres Ltd.’s third-quarter financial results was a 17% increase in sales.
Apollo posted net revenue of 2.4 billion rupees on net sales of 40.1 billion rupees for its third quarter ended Dec. 31, 2017. That compares to revenue of nearly 3 billion rupees on sales of 34.3 billion rupees for the same period in 2016.
Based on the exchange rate on Dec. 31, 2017, Apollo recorded net revenue of $38.3 million on net sales of $629 million. The 3Q income-to-sales ratio was 6.1%.
Operating profit was up 1.1%, from 5.37 billion rupees to 5.43 billion rupees.
The company experienced double-digit growths in both its Indian and European Operations.
“We have witnessed healthy growth across our operations, and this trend is likely to continue in the coming quarters as well, with our expansion projects coming on stream,” says Chairman Onkar S Kanwar. “While there was growth across all product categories in India, it was primarily led by truck radials. The increase in customs duty for the truck radials, announced in the Union Budget, will further boost our sales of commercial vehicle tires in India. The raw material costs in the third quarter were significantly higher than the previous year.”
For the first nine months of its fiscal year 2017-2018, Apollo’s revenue, sales and operating income were comparatively up (9%), down and down, respectively. Based on the currency exchange rate, the company posted net revenue of $74.2 million on net sales of close to $1.7 billion. Operating profit was $189.3 million.