GURGAON, India (Aug. 10, 2012)—Apollo Tyres Ltd. reported 79-percent higher earnings on 12-percent higher sales for the three months ended June 30.
First quarter net income jumped to $24.6 million on sales $565 million, for a 4.4-percent earnings ratio. The company said the increase in profitability was a result in improved price/ customer mix as the company moves upmarket.
Apollo Chairman Onkar Kanwar attributed the improved earnings to incremental revenue increases the past several quarters, reflecting the firm's focus on improving its product quality and customer mix across geographies.
In India, Apollo said it has established a clear leadership in the growing truck-bus radial tires, registering growth of 60 percent in the quarter; while in South Africa passenger vehicle tire sales moved higher by 32 percent. European Operations, even in a slowdown situation, continued to grow; profitability expanded by close to 50 percent.
Kanwar also said Apollo is consolidating its commercial vehicle tire research assets at a center being set up at its Chennai, India, plant, while at the same time locating passenger tire research and development at the company's operations in Enschede, Netherlands.
“This reorganization will enable (Apollo) to address evolving car and customer requirements more effectively,” Kanwar said. “As hubs, they will work with country level research centers to further customize product ranges to address local needs actively.”