Apollo Tyres Q3 cons net profit up 165%, net sales up 14%

The Board of Directors of Apollo Tyres Ltd, today took on record the company’s unaudited results for the third quarter of the financial year 2007-08. The Board also approved investments of Rs 3.6 billion for various green and brown field projects to be implemented in India.

Consolidated Highlights: Q3 FY2007-08 (October-December) versus Q3 FY2006-07

(Consolidated financials for India & South Africa Operations. Refer Notes of attached results)

• Net sales closed at Rs 12.4 billion up 14% from Rs 10.8 billion
• Net profit at Rs 820 million up 165% from Rs 308.6 million
• A 60% improvement in operating profits, excluding other income  

Standalone India Operation Highlights: Q3 FY2007-08 (October-December) versus Q3 FY2006-07

• Net sales closed at Rs 9.7 billion up by over 13% from Rs 8.5 billion
• Net profit at Rs 621.7 million up by 77% from Rs 350.7 million
• Over 41% improvement in operating profits, excluding other income
• Overall exports up 24% and exports of passenger car radials exports up by over 70%  

Commenting on the results, Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “This is the kind of steady growth that we are looking to maintain in India, South Africa or any other market that we work in, in the near future. Our strength in manufacturing and people are assets, and Indian companies need to leverage these to ensure that we build Brand India as a quality manufacturer of products and services.”

Projects approved by the Board are:

• Investment of Rs 2.2 billion for construction of a world class green field radial facility in the recently acquired 135 acres of land in the Oragadam Industrial Park, outside Chennai city in Tamil Nadu.This investment is in the first phase of the project, to be completed in the next 18 months.  
• Allocation of over Rs 1 billion for the setting up of a 10 tonnes a day Off-The-Road tyres or OTR facility at the company’s flagship manufacturing unit in Limda, outside Baroda city in Gujarat. This is an extension of the company’s product line, which will begin with the production of cross-ply OTR tyres and then extended to radial OTRs.  
• Approval of Rs 390 million for the setting up of an additional 8 megawatt wind energy project in Gujarat, creating fresh capacity for 7.5 megawatts of wind power generation. This is expected to compliment the existing 8 megawatt wind generation facility in Gujarat for the Limda plant.  

Commenting on the investments Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd said, “Apollo Tyres is currently in a growth mode and the investments are part of our ongoing product and capacity expansion plans for our India operations. This is a crucial market for us and we will continue to ensure both market and customer demands are fulfilled at the earliest possible. The OTR products will fill a yawning demand-supply gap in the Indian market. While the wind power generation project is part of our plans to ensure a steady movement to non-fossil fuel or least polluting sources of energy, wherever possible and available.”

Sourced From: Digiqom India