Apollo Increases Net Profits in 2Q
Apollo Tyres Ltd. posted net income of 2.8 billion rupees on net sales of nearly 30 billion rupees for the second quarter ended Sept. 30, 2015. That compares to income of nearly 2.6 billion rupees on sales of 33.3 billion rupees for the same period last year.
Based on the exchange rate on Sept. 30, 2015, Apollo recorded net income of $42.5 million on net sales of nearly $454 million for 2Q 2015-2016. The company’s income-to-sales ratio was 9.3%.
The company's operating income totaled 5 billion rupees ($83.1 million).
“Despite the increasing import of truck-bus radials (TBR), which continues unabated into India, we have been able to hold on to our revenues," says Chairman Onkar S Kanwar. "In the July-September quarter, the TBR imports increased almost 100%, as compared to the same period last year, of which, the economy/Chinese brands contributed nearly 90%.
"The problem of low cost imports is putting at risk the entire ‘Make in India’ clarion call by the Indian government.”
For the first half of its 2015-16 fiscal year, Apollo recorded net profit of $5.7 billion rupees on net sales of $58.1 billion. That compares to profits of more than 4.8 billion rupees (an increase of 17%) on sales of 65.5 billion rupees (a decrease of 11.2%) for the same period a year ago.