Apollo has released the results for the first quarter of the financial year 2015-2016. The homegrown tyre manufacturer has reported a net profit increase of 27 per cent in Q1 in 2015 as compared to Q1 in 2014.
Between April-June 2015, Apollo has recorded a net profit of Rs 291 crore on the net sales over the quarter from Rs 228 crore during the same period in 2014. The sales in Q1, however, have gone down by nearly 12 per cent. The net sales stood at Rs 2,832 crore in the first quarter of 2015-16 as compared to Rs 3,223 crore in Q1 of 2014-15. The operating profit for the company rose to Rs 529 crore from Rs 458 crore, an increase of 15 per cent.
According to Apollo tyres, its European operations reported flat revenue growth in the quarter under consideration. In the Indian market, the manufacturer states that its sales have been impacted by the increasing imports of commercial vehicle tyres into the country. As per the company, more than 30 per cent of the demand for truck-bus radials from the replacement market in India is being met by these imported tyres, a majority of which are from Chinese brands.
Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres, said, “In a slow-growth market across geographies, further marred by unregulated imports of tyres in India, we have planned and invested to capitalise on the future opportunities. This strategic planning will reduce our dependence on a particular market for growth and help us expand our global footprint.”