GURGAON, India (Oct. 20, 2009)—Apollo Tyres Ltd. achieved a marked improvement in profits and sales for the third quarter and six months, despite raw material price increases.
The Indian tire maker posted net profits of $27.9 million compared with $3.26 million in the third quarter last year, as operating profits rose to $62.7 million from $17.7 million. Sales jumped 62.1 percent in the period to $442.3 million.
For the six months, net and operating profits both more than doubled from the year-ago figure, to $43.7 million and $107.6 million, respectively. Revenue increased 43 percent to $792.1 million.
The company absorbed the higher raw material costs to “protect consumers' interest” in the quarter, said Apollo Chairman Onkar S. Kanwar. But the tire maker overcame that by continuing to emphasize managing costs and efficiencies internally, for which he praised Apollo's employees.
Kanwar expressed his concern about continuing increases in costs, noting in particular the volatile price of natural rubber.