Apollo Tyres profit up 44%, helped by lower costs

Apollo Tyres Ltd reported a 44 percent rise in its second-quarter profit, benefiting from a drop in raw material costs and strong performance at its European business.

Profit rose to Rs 219 crore for the quarter ended September 30, compared with Rs 152 crore a year earlier, Apollo said on Monday, after the market close. Four analysts on average expected the company to report a net profit of Rs 179 crore, according to Thomson Reuters I/B/E/S.

Revenue rose slightly to Rs 3433 crore, while the cost of materials consumed was lower at Rs 1816 crore, bolstering margins.

To transform itself from an India-focused company into the seventh-biggest tyre maker in the world, Apollo is seeking a $2.5 billion takeover of Cooper Tire and Rubber Co.

The companies have been at odds since Cooper sued Apollo in a U.S. court, alleging that the Indian company intentionally dragged its feet in talks with Cooper's union as an excuse to reduce the price of the deal.

A U.S. judge in a partial ruling on Friday said Apollo did not breach its obligation to close the Cooper buyout last month.

Copyright: Thomson Reuters 2013