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Apollo improves profitability in 2Q

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Apollo Tyres Ltd. posted net income of nearly 2.6 billion rupees on net sales of 33 billion rupees for its second quarter ended Sept. 30, 2014. That compares to income of 2.2 billion rupees on sales of 34.3 billion rupees for the same period in 2013.

Based on the exhange rate on Sept. 30, 2014, Apollo recorded net income of $42 million on net sales of $536.8 million for 2Q 2013. Its income-to-sales ratio was 7.8%.

2Q results (2Q 2014-15 compared to 2Q 2013-14)

Net profit: up 18%.

Net sales: down 3.8%.

Operating profit: up 9%.

For the first half of the company's fiscal year (April through September), Apollo posted income of more than 4.8 billion rupees on sales of 65.3 billion rupees.

Exports out of India, which grew close to 30% quarter to quarter, helped Indian operations. However, the sale of part of the company's African business during its last fiscal year led to flat revenue growth on a consolidated level in both the second quarter and half year of 2014-2015 fiscal year.

"Our 18-24 months of planning and smart execution has resulted in incremental exports out of India, and with additional demand for our products in the Middle East and ASEAN region, we expect this to grow further," says Chairman Onkar Kanwar. "Taking into account the export growth, and the expected revival of the commercial vehicle segment in India, our expansion projects in Chennai and Kochi, both in the southern part of India, is moving ahead full steam."

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