Country's largest tyre manufacturer Apollo Tyres' consolidated net profit rose by 79% year-on-year to Rs 138 crore in the quarter ended June 2012 led by a more judicious product and customer mix.
Consolidated net sales went up by 12% to Rs 3,165 crore from Rs 2,822.4 crore during the same period.
Topline as well as bottomline were in-line with analysts' expectations of Rs 3,340 crore and Rs 135 crore, respectively.
Operating profit increased 48% year-on-year to Rs 361 crore in the first quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin jumped 290 basis points to 11.4% YoY.
South Africa's business saw improvement in the quarter gone by, which posted EBIT at Rs 5.3 crore as against loss of Rs 11.8 crore quarter-on-quarter.
In India, Apollo has established a clear leadership in the growing truck-bus radial tyres, registering a growth of 60% in the quarter; while in South Africa passenger vehicle tyre sales moved higher by 32%. European operations, even in a slowdown situation continued to maintain topline growth and profitability expanded by close to 50%.
In an interview with CNBC-TV18, Neeraj Kanwar of Apollo Tyres said the second quarter would be much better than the first quarter as raw material cost would be stable in the July-September quarter.
He sees double-digit growth in revenue in the current financial year (2012-13), but "an interest cost would be elevated due to Chennai expansion," he said.
At 13:21 hours IST, the share shot up more than 4% to Rs 82.80 amid large volumes.
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