Apollo Tires' second quarter profit falls 43 pcs to Rs 83 cr due to weak domestic market demand
New Delhi, November 5 () Apollo Tires reported on Tuesday a decrease of 43.15 percent in its consolidated net profit of Rs 83 crore for the second quarter ending September 30, affected by a weak performance in the Internal market.
The company had published a net profit of Rs 146 Rs for the period July-September 2018-19.
Net sales decreased to Rs 3,926 million rupees during the second quarter compared to Rs 4,192 crore during the same period last year, Apollo Tires said in a statement.
The tire specialist said his European operations reported a single-digit revenue growth, both in the second quarter and in the first half of the fiscal year.
On the other hand, domestic revenues were affected by the slowdown in the Indian market, especially in the original equipment (OE) segment, he added.
Amid the difficult market conditions in the automotive sector in India, we saw positive volume growth in the replacement market, both in passenger car and commercial vehicle tire segments in India, said Apollo Tires president, Onkar S Kanwar.
European operations have also reported positive volume growth, thanks to exemplary test results for winter tires and for all seasons of major automotive magazines, for the Apollo and Vredestein brands, he added.
During the six months ended September 30, the company reported a net profit of Rs 225 million rupees compared to Rs 398 million rupees in the same last fiscal period. Net sales during the period from April to September this fiscal year amounted to Rs 8,198 million, compared to Rs 8,442 million in the same period of 2018-19. Apollo Tires shares traded at 1.27 percent at Rs 183.30 each in the BSE. MSS ANS ANS