KOCHI, India – Apollo Tyres Ltd. reported declines in operating profit and net profit for the quarter ended June 30 amid headwinds, especially in the Indian market.
Pre-tax operating profit fell 48% to $25.8 million in the quarter on 0.7% higher sales of $623 million, resulting in a four-point drop in the operating ratio to 4.1%.
Sales remained positive aided by growth in the replacement segment, both in commercial vehicle and passenger vehicle segment in India as well as in Europe.
Net profit fell 44% in the quarter to $20.7 million, according to the Apollo statement.
"While the demand from the auto makers remained subdued, there was growth in the replacement market segment [in India]," said Onkar S Kanwar, chairman, Apollo Tyres Ltd.
According to Mr. Kanwar, Apollo is performing "better than the industry" in Europe and is likely to continue going forward.