Apollo Tyres Q1 net profit soars 79% to Rs 138.02 cr
Apollo Tyres today reported 78.94% increase in consolidated net profit at Rs. 138.02 crore for the quarter ended June 30, on the back of better product and customer mix.business Updated: Aug 09, 2012 15:20 IST
Apollo Tyres on Thursday reported 78.94% increase in consolidated net profit at Rs. 138.02 crore for the quarter ended June 30, on the back of better product and customer mix.
The company had posted a net profit of Rs. 77.13 crore in the corresponding period last year, Apollo Tyres said in a statement.
The consolidated net income during the first quarter also went up by 12.13% to Rs. 3,164.70 crore from Rs. 2,822.41 crore in the year-ago period, it added.
Commenting on the numbers, Apollo Tyres chairman Onkar S Kanwar said: "For the past few quarters, we have been focusing on improving our product and customer mix across geographies.
"This has enabled us to post incremental revenue increases on a sequential basis in each of the quarters last year, eventually resulting in enhanced profitability in the first quarter of this year."
The investments made in the Chennai plant two years back on both product and process technology are showing results and have provided the company with a superior springboard for the future, he added.
While addressing the company's shareholders earlier during the day in its annual general meeting Kanwar said, Apollo Tyres is looking to set up manufacturing bases in many overseas countries.
"Over the course of the past year, we have identified the specific geographies of the Middle East, South East Asia, Australia and Brazil as potential future home markets, some with manufacturing bases," he said without sharing details.
Apollo Tyres is present in over 118 countries.
Besides, Apollo Tyres is focussing further to consolidate its position in each of its home markets -- India, South Africa and the European Union.
"This would be balanced with a focus on profitable segments of the tyre market. In India, for example, the focus would be on increasing the gap between us and our competitors with a larger and more meaningful portfolio for our customers," he said.
The entry of the Vredestein brand into India will help the company to take on a leadership position in the ultra high performance tyre and car segment, he added.
Besides higher penetration of mining and speciality tyres in South Africa, the company's focus in Europe for the next two years will continue to be on deepening and strengthening passenger car tyre brands of both Apollo and Vredestein.
"Currently in Europe, demand outstrips our capability to meet with supplies. And therefore, your company is actively looking at ways in which we can fulfil this increasing European demand in passenger car tyres," he said.
Shares of the company were trading 3.34% up at Rs. 82.10 apiece on the BSE in the late afternoon trade.