Apollo Tyres Q1 net up 20 per cent

Apollo Tyres on Wednesday reported 20.23 per cent increase in net profit at Rs 165.94 crore for the
quarter ended June 2013, on the back of higher margin in truck-bus radial segment and focus on replacement market.

The company had reported a net profit of Rs 138.01 crore in the same quarter a year ago.

Apollo Tyres' net sales in the quarter under review were at Rs 3,189.93 crore, an increase of 0.79 per cent as compared to Rs 3,164.7 crore in the same period last year, the company said in filing with BSE.

Commenting on the company's performance during the quarter, Apollo Tyres Ltd chairman Onkar S Kanwar said: "It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with
an increased focus on the replacement market across geographies, has helped us increase our profitability."

Apollo Tyres' European operations registered an increase of 6 per cent in revenues and net sales from South African operations grew 13 per cent.

"Despite the sluggishness in the automotive sector, the company has managed to hold on to its revenues," the company said in a statement.

Overall expenses in the quarter were at Rs 2,895.01 crore, a decrease of 0.40 per cent, compared with Rs 2,906.66 crore in the corresponding quarter last year.

Commenting on the company's proposed acquisition of US-based Cooper Tire and Rubber Company, Mr Kanwar said: "Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by Q3 of this fiscal."