Net profits grew 3.8% to 193 million rupees (£2.28 million) despite global raw material increases. Sales improvement was reflected in the half-year results. Net sales were up 27% to 15.246 billion rupees (£180 million). Operating profit grew 2.8% in the six-month period to 1,167 billion rupees (£13.78 million).
Commenting on the results, Neera Kanwar, joint managing director, Apollo Tyres Ltd., said: “Continued sales growth amidst tremendous cost push from the raw material side has been a very significant achievement. As has been our ability to increase our market share in all the key segments over these past six months. The tapering off in [synthetic] and natural rubber prices from the abnormal highs they had shot up to in July and August, is a very positive factor in terms of the entire tyre industry’s ability to maintain profit margins and deliver new products to the market.”
Kanwar added: “The fact that we are currently the largest exporters of passenger car radial tyres from India to key markets like Europe speaks volumes about the technology that backs each of our products. Over the next few months we will be launching ultra-high performance tyres for the upper end of the car market, as well as truck and bus tyres customised to suit our unique Indian customerand infrastructure needs.”
According to the company, Apollo Tyres continues to be domestic market leader in the truck and bus segment with a 28% market share in April-July 2006. Apollo reports that this is 2% higher than the same period in 2005. Furthermore, the company reports that its domestic passenger car market share was 16% up 1% over the same period last year. Rear tractor market share was said to be 3% up 3% over 2005.
Apollo says it is currently the largest exporter of passenger car radial tyres from India. And its share of industry exports was 48% between April and July.