GURGAON, India—Apollo Tyres Ltd. reported double-digit growth in operating and net income for the quarter that ended June 30 on 0.8-percent higher sales.
Apollo Chairman Onkar Kanwar attributed the earnings improvements to the company's leadership in India's high-margin truck/bus radial segment and an increasing focus on international replacement markets. He said the improvement came amid a "challenging time" for the automotive industry.
Operating income for the period—the first quarter of Apollo's 2013-14 fiscal year—rose 11.9 percent to $72.5 million while net earnings were up 19.4 percent to $29.7 million. Sales edged up to $571.7 million, yielding an increased operating income/sales ratio of 12.7 percent.
Internationally, Apollo reported its European and South African operations registered 6- and 13-percent increases in revenue, the latter amid concerns of growing imports of tires from China.
Apollo also reported that shareholders approved the annual dividend payout of half a rupee per share for the year ended March 31, 2013.
Regarding Apollo's pending $2.5 billion bid to take over Cooper Tire & Rubber Co., Kanwar said, "…we remain committed to closing this compelling transaction. Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by quarter three of this fiscal (year)."