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Friday, 10 February 2012

18.58 percent decline in net profits in Q3 reported by Apollo Tyres

Apollo-tyres
The tyre maker Apollo Tyres has reported an 18.58 per cent decline in its consolidated net profit for the quarter ended December 31, 2011, at Rs 98.04 crore due to impact of high input costs. According to reports, the company had posted a net profit of Rs 120.42 crore in the corresponding period last financial year.

It was mentioned that the consolidated net sales during the third quarter, however, increased 36.29 per cent to Rs 3,228.24 crore from Rs 2,368.58 crore in the year-ago period. The reports quoted Apollo Tyres Chairman, Onkar S. Kanwar as saying “The raw material prices have stabilised to some extent, but they continue to remain on the higher side and put our margins under pressure.”

As per reports, the company’s all three geographies of operations have performed well amid concerns over a slowdown throughout the last two quarters. The revenue growth was led by Indian operations with 46 per cent increase over the same period last fiscal, followed by South Africa with 28 per cent and Europe with 26 per cent growth. Kanwar said ``I am confident that the next quarter would see us further consolidate our growth and profitability journey.” During the quarter, the company’s spending on raw materials went up by 37.28 per cent to Rs 2,000.17 crore from Rs 1,457.01 crore in the same period previous year. Consolidated total expenditure shot up 38.07 per cent to Rs 2,986.25 crore from Rs 2,162.87 crore.Automobile News

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