Apollo Tyre Q2 Profit Falls 43 Percent On Weak Demand In The Indian Market
Published On 06-Nov-2019 01:01:36
Net profit for Q2 of FY20 stood at Rs 83 crores, as against Rs 146 crores in the same period last fiscal
Hit by weak performance in the domestic market, Apollo Tyres on Tuesday reported a 43.15 percent decline in its consolidated net profit at Rs 83 crore for the second quarter ended September 30. The company has posted a net profit of Rs 146 crore for the July-September period of 2018-19.
Net sales declined to Rs 3,926 crore during the second quarter as against Rs 4,192 crore in the year-ago period, Apollo tyre said in a statement.
European operations reported single-digit growth in revenue, both in the second quarter and in the first half of the fiscal. Indian operations revenue was impacted by the slowdown in the Indian market, especially in the OE segment, added the tyre major.
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Commenting on the company’s performance Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “Amidst challenging market conditions across the automotive sector in India, we did see positive volume growth in the replacement market, both in passenger vehicle and commercial vehicle tyre segments in India. European Operations have also reported positive volume growth, on the back of exemplary test results for winter and all-season tyres by leading auto magazines, for both Apollo and Vredestein brands.”
For six months ended September 30, the company reported a net profit of Rs 225 crore as against Rs 398 crore in the same period last fiscal. Net sales during the April-September 2019-20 fiscal stood at Rs 8,198 crore, as against Rs 8,442 crore in the same period of 2018-19.