Apollo Tyres has registered a profit of Rs 88 crore (consolidated) on the net sales of Rs 3258 crore in the April-June first quarter of 2017-18. While Indian Operations’ grew marginally to close at Rs 2284 crore, European Operations clocked a revenue of Rs 1016 crore on the back of good volume growth in the passenger vehicle segment. The first quarter revenue, in India, was subdued because of the pre-GST destocking by the company’s business partners, and due to the confusion over switchover from BS III to BS IV emission norms in commercial vehicles. Operating profit for Q1 was Rs 282 crore.
“The results reflect the impact of the rising raw material prices on our Operations. Raw material prices as a basket has jumped more than 30 per cent in the first quarter, as compared to the same period last year, and has negatively impacted our margins. While, rubber prices have softened to some extent, other raw materials are still on a higher side, which is likely to put our margins under pressure going forward as well. Considering this, we may need to take price corrections,” said Onkar S Kanwar, Chairman, Apollo Tyres Limited.
Kanwar said that there is robust demand from the OEMs and the growing vehicle sales in Inia, both passenger and commercial, post GST implementation.
“The recommendation by the Directorate General of Anti Dumping (DGAD) in India to impose anti dumping duty on truck-bus radials from China, has vindicated our stand on the same, and which, once implemented, would be a boost for us in India. In Europe, the increased sales reported by most of the vehicle manufacturers in the first half of the calendar year, would also prove to be a positive for us going forward,” he said.