Apollo Tyres Ltd. recorded net income of 980 million rupees on consolidated net sales of nearly 32.3 billion rupees for the third quarter ended Dec. 31, 2011. That compares to profit of 23.7 billion rupees for the same period a year ago.
Based on the exchange rate on Dec. 31, 2011, Apollo posted net income of $18 million on net sales of $594.6 million for the third quarter of its 2012 fiscal year. Its income-to-sales ratio was 3%.
Apollo says the 36.2% growth in revenue was led by a 46% increase at its Indian operations and a 26% increase in its Europe operations. Operating profit was up 18%, to nearly 3.3 billion rupees.
For the first nine months of its fiscal year, Apollo recorded the following (with a comparison to the same period in 2010 in parentheses):
* net income of 2.5 billion rupees (up 2%);
* net sales of 89.2 billion rupees (up 45.3%);
* operating profit of 8.1 billion rupees (up 22%).
“All three geographies have performed exceptionally well amidst concerns over a slowdown throughout the last two quarters," says Chairman Onkar Kanwar. "The raw material prices have stabilized to some extent, but they continue to remain on the higher side and put our margins under pressure.
"In India, our truck-bus radial journey, which started last year, is in full swing; and with 4,000 truck-bus radial tires coming out of our Chennai (India) plant every day, we have already gained leadership position in this segment as well. I am confident that the next quarter would see us further consolidate our growth and profitability journey."
