GURGAON, India–Apollo Tyres Ltd. reported slight decreases in sales and income for its fiscal first quarter ending June 30.
Sales dropped to $555.8 million compared to $560.1 million in 2016. Net income declined to $13.9 million compared to $49.5 million.
Chairman Onkar Kanwar said in a statement that the results reflect the impact of rising raw material prices on Apollo's operations, adding that overall prices have increased more than 30 percent in the first quarter compared to 2016.
"While rubber prices have softened to some extent, other raw materials are still on the higher side, which is likely to put our margins under pressure going forward as well," he said in a statement. "Considering this, we may need to make price corrections."
The executive added that Apollo is seeing strong demand from OEMs and growing vehicle sales in India, both on the passenger and commercial side.
The firm reported sales of $406 million in its Asia-Pacific, Middle East and Africa segment, a decrease compared to $402.4 million in 2016. In Europe, sales dropped to $159.7 million against sales of $165.7 million in 2016. The firm did experience a bump in revenue to $110.2 million in its "other" segments, up from $47.6 million in 2016. These include about $120.2 million of intersegment sales.