MUMBAI, India (May 11, 2012)—Apollo Tyres Ltd. reported 18-percent growth in operating income for the fiscal year ended March 31 on 37-percent higher sales, but net income fell 6.8 percent.
Operating income rose to $249.5 million on sales of $2.53 billion for a 9.9-percent earnings ratio. Net profit fell to $85.2 million, or 3.4 percent of sales.
Chairman Onkar Kanwar attributed the higher operating results in part to stable raw materials prices in the second half of the fiscal year. He did not comment directly on the reasons for the lower net income.
Apollo's domestic revenue grew 49 percent, while sales in Europe and Africa were up 27 and 10 percent, respectively. India represents two-thirds of Apollo's global sales, with Europe accounting for 23 percent and Africa 10 percent.
Apollo said it is looking to expand its business in Europe and is evaluating sites in Poland and Hungary for a proposed $250 million tire plant to support that vision.