Nov 03, 2021
In the second quarter of the fiscal year ending September 30, Indian tire manufacturer Apollo Tires reported that sales rose 18% to Rs 50.77 billion (€ 580.95 million), but operating profit was down 9.8% from from the same period last year, up to 6.38 billion rupees (73 million euros). The profit margin for the period was 12.6%, which is below the level of the second quarter of the last fiscal year (16.5%). The tire manufacturer posted a net profit of Rs 1.74 billion (€ 19.92 million).
Apollo Tires' operating profit for the first half rose 26% to INR 12 billion on the back of a 35% increase in sales to INR 96.6 billion.
The company attributes the growth in sales to strong demand for its products in different categories and regions.
"[This] can be seen in the strong revenue growth in both the second quarter and the first half of the fiscal year," said chairman Onkar Kanwar. He added that a number of new products recently introduced by the company are helping Apollo expand its presence in the commercial and passenger car segment in India. In Europe, numbers also continue to rise, especially in the premium segment. However, the company continues to experience pressure on profitability due to rising commodity prices, despite repeated price adjustments in the past few months.