Apollo Tyres reports Rs 166 crore profit in Q1 2013-14

August 7, 2013: The board of Apollo Tyres has approved the company’s unaudited results for the first quarter of 2013-14. For the quarter ended June 30, 2013, the company, on a consolidated level, reported a profit of Rs 166 crore on net sales of Rs 3,190 crore. Despite the sluggishness in the automotive sector, the company has managed to hold on to its revenues, it said in a press release

Apollo Tyres’ European Operations, continuing its strong performance, recorded an increase of six percent in revenues in Q1 FY14, as compared to the same period last year. The net sales for company’s South African operations also grew 13 percent amidst concerns of growing imports of tyres from China.

Onkar S Kanwar, chairman, Apollo Tyres, said, “It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability.”

In the quarter under review, Apollo announced plans to acquire Copper Tire & Rubber of the US. The acquisition is in line with Apollo’s ambitious plans to increase its global footprint. Six months ago, speaking to Autocar Professional in December 2012, Neeraj Kanwar, vice-chairman and MD, Apollo Tyres, had said: “Our vision is to become a significant company in the global tyre industry. To join the elite league of global top 10 tyremakers, we are looking at almost tripling our current turnover of $ 2.5 billion in four years.”

With Cooper, which clocked revenues of $ 4.2 billion in 2012, Apollo has moved closer to its goal. The combined Apollo and Cooper revenues for 2012 are estimated at $ 6.6 billion, helping the tyremaker enter the world’s Top 10 list.

TOP 10 TYRE MAKERS

Bridgestone

Michelin

Goodyear

Continental

Sumitomo

Pirelli

Cooper + Apollo

Hankook