Apollo Tyres has reported a net revenue of Rs 3,258 crore for Q1 FY2018. While its Indian operations posted marginal growth to close at Rs 2,284 crore, European operations revenue was Rs 1,016 crore on the back of good volume growth in the passenger vehicle segment.

Attributing the marginal growth in India in the first quarter due to the pre-GST destocking by the company’s business partners, and the confusion over switchover from BS III to BS IV emission norms in commercial vehicles, the company reported a profit of Rs 88 crore.

Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres, said: “The results reflect the impact of the rising raw material prices on our operations. Raw material prices as a basket has jumped more than 30 percent in the first quarter, as compared to the same period last year, and has negatively impacted our margins. While rubber prices have softened to some extent, other raw materials are still on a higher side, which is likely to put our margins under pressure going forward as well. Considering this, we may need to take price corrections.”

“The silver lining for us is the robust demand from the OEMs and the growing vehicle sales in India, both passenger and commercial, after GST implementation. The recommendation by the Directorate General of Anti Dumping (DGAD) in India to impose anti-dumping duty on truck-bus radials from China has vindicated our stand on the same, and which, once implemented, would be a boost for us in India. In Europe, the increased sales reported by most of the vehicle manufacturers in the first half of the calendar year, would also prove to be a positive for us going forward,” concluded Kanwar.