Apollo Tyres' net profit rises 46% in 2Q
Apollo Tyres Ltd. recorded net income of 800 million rupees on net sales of 28.7 billion rupees for its second quarter ended Sept. 30, 2011. That compares to income of 500 million rupees on sales of 19.5 bilion rupees for the same period last year.
Based on the exchange rate on Sept. 30, 2011, Apollo had net income of $16.1 million on net sales of $578.4 million for 2Q 2011. It's income-to-sales ratio was 2.8%.
For its fiscal first half, Apollo Tyres posted net income of 1.5 billion rupees on net sales of 56.9 billion rupees for (click here for the company's first-quarter results.)
Apollo Tyres' operating income for the second quarter and first half of fiscal 2012 was 2.4 billion rupees and 4.8 billion rupees, respectively.
“While our top-line has grown across geographies, currency fluctuations, especially a weaker rupee, and continued cost push have impacted our bottom-line," says Chairman Onkar Singh Kanwar.
"The near flat growth in the first half of the fiscal in the commercial vehicle tire segment in India is worrying and could pose a challenge in the coming quarters. While our European business is currently registering strong growth, we are alert to the broader economic situation there and are keeping a close watch on developments.”
Kanwar was inducted into the Tire Industry Hall of Fame on Oct. 31 in Las Vegas, Nev., prior to the start of the 2011 Global Tire Expo-Powered by TIA.