GURGAON, India — Apollo Tyres Ltd. reported a 20-percent drop in operating income for the quarter ended Sept. 30 despite an 18-percent increase in sales.
Gurgaon-based Apollo cited higher raw materials prices — up nearly 15 percent vs. the second quarter a year ago — for the drop in operating income.
On a consolidated level, the operating profit fell 20 percent to $59 million, on net sales of $523.4 million, for an operating ratio of 11.2 percent. Regionally, Apollo's Indian operations reported an 18-percent jump in net sales, making them the "dominant contributor to the revenue growth" in the second quarter, Apollo reported.
Net income plunged 57.5 percent to $21.6 million.
For the first half of the fiscal year, Apollo posted an operating profit of $103.3 million on sales of $1.04 billion, for an operating ratio of 10 percent.
"With several capacity expansion projects currently under way for the company, we are looking forward to a healthy growth in the coming quarters," Chairman Onkar Kanwar said.
First half net income dropped 60.3 percent to $35.4 million.