Apollo Remains Highly Profitable Despite 1Q Dip in Income
Apollo Tyres Ltd. posted net income of more than 3.1 billion rupees on net sales of 32.8 billion rupees for its first quarter ended June 30, 2016. That compares to income of 2.8 billion rupees on sales of 28.3 billion rupees for the first quarter of Apollo's 2015-2016 fiscal year.
Based on the exchange rate on June 30, 2016, Apollo recorded net income of $46.7 million on net sales of $487 million for its first quarter of the 2016-2017 fiscal year. It's income-to-sales ratio was 9.6%.
Apollo's operating income for 1Q was up 8%, from 5.2 billion rupees a year ago to more than 5.6 billion rupees ($83.9 million) .
According to Apollo, sales from the company's Indian Operations were up 6%. "Some of the new products introduced in the Indian market, including the newly launched two-wheeler tires, have seen good demand, especially in the replacement market."
Sales from European Operations were up 10%, helped by increased sales of passenger tires.
“Despite the challenges posed by the Chinese imports, we have seen increased demand for our products from both OEs and the replacement market across product categories in India," says Chairman Onkar S Kanwar. "Our newly-launched two-wheeler tires have also been very well accepted by the customers."
With the increased truck and bus radial capacity kicking in over the next two to three months, Kanwar says Apollo is "well poised to a higher volume growth in the fiscal."
To read Kanwar's speech at the annual shareholders' meeting, check out this link:
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