The Hindu Business Line : Apollo Tyres Q1 net up 7%

NEW DELHI: Tyre major Apollo Tyres on Friday reported a 7.3 per cent increase in consolidated net profit for the first quarter ended June at Rs 58.66 crore, against Rs 54.64 crore in the same period last year.

Consolidated revenue during the quarter stood at Rs 1,320 crore, against Rs 1150 crore in the corresponding quarter a year ago, up 15 per cent, the company said in a statement.

At the Annual General Meeting of the company, the shareholders approved the annual dividend payout of 50 per cent per share for the year ended March 31, 2008, it added.

Standalone India Operations net profit was at Rs 48.63 crore, up 4 per cent from Rs 46.76 crore, it said, revenue was at Rs 1,070 crore, up 23 per cent from Rs 870 crore.

Commenting on the results Apollo Tyres Chairman and Managing Director Mr Onkar S Kanwar said: “These are probably one of the most challenging times we have faced as a company. The unnatural rise in crude and natural rubber prices, have had a cascading im pact across all raw materials.”

Combined with prices, which are two or three times higher than what they were last year, the company is facing the added problem of certain essential crude-based raw materials being unavailable even at higher prices, he added.

“Merely by increasing product prices we will not be able to bridge this yawning gap. The only solution is to look internally, undertaking rigorous efficiency and economy drives across the organisation. That's the silver lining. I believe this frugality w ill only strengthen the company in the long run,” Mr Kanwar said. - PTI

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