KOCHI, India—Apollo Tyres Ltd. has reported declines in first quarter operating profit and net profit amid headwinds, especially in the Indian market.
Operating profit recorded an 11.7 percent decline at $73.2 million in the three months to end of June, on 0.7 percent higher net sales at $61.8 million, the Indian tire maker disclosed July 31.
Net sales remained positive aided by growth in the replacement segment, both in commercial vehicle and passenger vehicle segment in India as well as in Europe. Net profit, meanwhile, fell sharply from $36.5 million in the first quarter of the previous financial year to $20.5 million in fiscal 2020, according to the Apollo statement.
"While the demand from the auto makers remained subdued, there was growth in the replacement market segment (in India)," Apollo Tyres Chairman Onkar S. Kanwar said in a statement.
According to Kanwar, Apollo is performing "better than the industry" in Europe and is likely to continue going forward.