Apollo Tyres Ltd. posted net income of more than 1.6 billion rupees on net sales of 31.9 billion rupees for the first quarter of its fiscal 2014 ended June 30, 2013. That compares to income of 1.4 billion rupees on sales of 31.6 billion rupees for the same period last year.
Based on the exchange rate on June 30, 2013, Apollo recorded net income of $27.8 million on net sales of $535.2 million for the first quarter. Its income-to-sales ratio was 5.2%.
Apollo's operating income increased 12%, from 3.6 billion rupees to more than 4 billion rupees.
"It is a challenging time for the automotive industry, with sales slowing for most vehicle makers," says Chairman Onkar S Kanwar. "However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability."
Apollo's European operation registered an increase of 6% in revenues in Q1 FY14, as compared to the same period last year. The net sales for company's South African operations also grew 13% amidst concerns of growing imports of tires from China.
"During the last quarter, we also announced the acquisition of U.S.-based Cooper Tire and Rubber Co.," says Kanwar. "With a rich history of working in multiple locations around the world and with diverse cultures, which is based on our core values, we remain committed to closing this compelling transaction.
"Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by Q3 of this fiscal (Dec. 31, 2013)."
While Apollo's board of directors was approving the company's unaudited results for the first quarter, shareholders at the company's 40th annual shareholders' meeting approved the annual dividend payout of 50% per share for the year ended March 31, 2013.
Apollo Vredestein B.V., a subsidiary of Apollo Tyres, posted net income of 46.6 million euros on net sales of 425.5 million euros for its 2013 fiscal year ended March 31, 2013.
