GARGAON, India (May 13, 2015) — Apollo Tyres Ltd. reported a slight operating income gain for the fiscal year ended March 31 on 4.4-percent lower sales.
The Indian tire maker attributed the lower sales to the combined effects of a depreciating euro and the loss of sales volume from the firm's Dunlop-related activities in Africa, divested in late 2013 to Sumitomo Rubber Industries Ltd.
The company's operating income rose 0.5 percent to $32.5 million on sales of $2.08 billion, yielding an operating ratio of 15.6 percent. Net income fell 2 percent to $16 million.
Apollo Chairman Onkar Kanwar said the lost sales revenue from the African divestiture offset “healthy volume growth” in its European car tire business and nearly 30-percent volume growth in the truck-bus radial segment in India.
Nonetheless, he said, the company's effort toward market expansion outside India resulted in export growth of more than 20 percent from India.