Apollo Tyres Q2 FY 2008 profits down by 74%
Despite increased sales, Apollo Tyres has reported a steep fall in its Q2 FY 2008 profits due to increases in raw material prices. India's second largest tyre manufacturing company, Apollo Tyres posted a consolidated net profit of Rs 151 million, on sales of Rs 12.6 billion in the quarter, compared to a profit of Rs 576 million on sales of Rs 10.8 billion in Q2 FY 2007.
The company's consolidated net profit margin for the quarter came in at 1.2 percent, compared with the preceding quarter's 4.4 percent. 'It has been a testing quarter for the company and the industry, but I do believe that the worst might be behind us,' said Onkar Kanwar, chairman, Apollo Tyres.
The company, which had last raised prices by about seven percent in July, is likely to raise prices again by 3-4 percent over the next one month. Apollo Tyres, however, stands by its forecast of 15-20 percent growth in FY09, and will also go ahead with its planned capacity expansion in India and South Africa, investing up to US$320 million towards this.
[Via: indiaautomotive]