Apollo Tyres Q3 sales hit due to hike in input cost

Apollo Tyres Chennai declared that there is a sharp decline in the net profit by  Rs 67 crores  in  the third quarter and Rs 142 crores for the past nine months. In Chennai, for the first time, the Apollo board members met to formally inaugurate Apollo's new generation tyre production unit.

Onkar S Kanwar, Chairman, Apollo Tyres Ltd, encountered the questions on the recent results of the company and said that since 9 months the company has been investing, planning and generating better quality products and working on strategies. The increase of the tyre prices upto 70 per cent has affected the results. He also said that the company is trying its best to improve the conditions and is looking forward at the emerging markets. It is also striving to provide better goods to the customers as per their needs and requirements.

Apollo registered Rs 23.7 billion (2368 crores) net sales for the Q3 which is raised from Rs 23 billion (2296 crores) however, the net profit declined to Rs 1.2 billion (120 crores) which was Rs 1.9 billion (187 crores). It was reported that the consolidated financials take into the account the revenues  of Apollo Vredestein B V, Netherlands, Apollo Tyres South Africa and Apollo Tyres India.

In the first nine months of the fiscal year, Apollo's net sales clocked Rs 61.4 billion (6138 crores) slightly high from Rs 59.8 billion (5977 crores) but the net profit dropped to Rs 2.5 billion (248 crores) from Rs 3.9 billion (390 crores).

From December 2009 to 2010, the industry has witnessed major changes in the tyre manufacturing, mainly from the prospective of increasing raw material price that too of the key components. The natural rubber prices moved from Rs 119 per kg to Rs 194 per kg in December 2010, at present it is more than Rs 240 per kg. The crude oil showed no mercy by jumping to US$ 85 per barrel from US$ 76 per barrel in just 12 months leaving an impact on all the commodities.

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