Apollo Tyres clocks Rs 216 million Q1 net

Mumbai: Apollo Tyres Ltd has posted a net profit of Rs 216.20 million for the quarter ended 30 June 2002 as compared to Rs 91.10 million in the quarter ended 30 June 2001.

The total income (net of excise) has increased from Rs 3,701.70 million in the quarter ended 30 June 2001 to Rs 3,858.10 million in the quarter ended 30 June 2002.

Apollo Tyres had achieved a record turnover in excess of Rs 17,000 million for the year ended 31 March 2002 on the basis of the provisional figures compiled by the company.

The company further says the last three years' revenue trend clearly shows a steady growth pattern. “The 18 per cent growth achieved by the company is remarkable at a time when the business environment has been challenged by the continuing recession.“

Apollo Tyres is bidding to take over a tyre factory in China and negotiations are at an advanced stage (See: 'Apollo Tyres may acquire Chinese factory'). “We are bidding for 70 per cent of the control of the factory. After the takeover, we will be prepared to invest $15-20 million,“ says Apollo Tyres' vice-chairman Onkar S Kanwar.

Better sales of automobiles had helped tyre manufacturing companies to post improved financial results for the January to March quarter in 2002. Major tyre manufacturing companies like MRF, Apollo, Goodyear and Ceat have reported an increase in their total sales, operating margins and net profit margins.

MRF has seen its operating margin improve from 8.5 per cent in the January-to-March 2001 quarter to 10.8 per cent in the corresponding period this year. Apollo Tyres' operating margins moved from 6.8 per cent to 10.4 per cent, while Goodyear saw its margin move from 0.3 per cent to 3.3 per cent and Ceat Tyres from 4.4 per cent to 6.8 per cent.

Their net profit margins have also shown a similar trend with all these companies able to improve over their results of the same quarter in the previous year.