Apollo Tyres Ltd. posted FY2010 sales of Rs 88.6 billion, up 9% from the year prior, while net profits fell to Rs 4.4 billion from Rs 6.5 billion the previous year.
"This has been an extremely challenging year of spiraling raw material prices, especially natural rubber, and closures for over a quarter in one of our Indian plants, and an industry-wide strike in South Africa," said chairman Onkar Kanwar. "These resulted in production and sales losses. Despite these, we have registered a very positive revenue growth across all our operations.
"The cost push has impacted our bottom line," he continued. "While price increases have been resorted to, the lag effect impacts margins. This trend of high prices is expected to continue for the next few months. More importantly, it is also availability of natural rubber that is currently a cause of concern."