The Board of Directors of Apollo Tyres Ltd today approved its unaudited financial results for the second quarter and the first six months of the financial year 2013-14. According to a company statement, for the quarter ended September 30, 2013, Apollo Tyres on a consolidated level, reported a profit of Rs 219 crore, on net sales of Rs 3,433 crore. For the first half of the year (April – September), the tyre maker logged a profit of Rs 385 crore, on net sales of Rs 6,623 crore. Apollo Tyres’ European Operations continued with its strong performance and reported a 27 percent increase in the second quarter revenues, as compared to the same period last fiscal.
Quarterly Performance Highlights
Quarter 2 FY2013-14 (July-September) vs Quarter 2 FY2012-13
· Net sales stood at Rs 34.3 billion (Rs 3433 crores) against Rs 33.7 billion (Rs 3,374.8 crore)
· Operating profit up 16 % at Rs 4.4 billion (Rs 440.6 crores) from Rs 3.8 billion (Rs 380.9 crore)
· Net profit up 44 % at Rs 2.2 billion (Rs 219.5 crore) from Rs 1.5 billion (Rs 152.2 crore)
Half Yearly Performance Highlights
H1 FY2013-14 (April-September) vs H1 FY2012-13
· Net sales recorded was Rs 66.23 billion (Rs 6623 crores) against Rs 65.4 billion (Rs 6539.5 crores)
· Operating profit up 14% at Rs 8.4 billion (Rs 845 crores) from Rs 7.4 billion (Rs 742.3 crores)
· Net profit up 33% at Rs 3.8 billion (Rs 385.4 crores) from Rs 2.9 billion (Rs 290.2 crores)
Speaking on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said: “Our focused efforts towards improving our product and customer mix across geographies is showing its results, and is also evident from our improved bottomline despite the challenging circumstances. In India, which is our largest market, while there is no upswing in the demand from the OEs, the healthy demand in the replacement market, especially for our products, has helped us to hold on to our topline. We are also looking forward to introduce the Vredestein brand in India next month”.
The Board of Directors, during the meeting held today, also took cognizance of the fact that, during the previous quarter, Apollo Tyres Ltd, through its subsidiaries, had entered into a definitive merger agreement for acquisition of US-based Cooper Tyre & Rubber Company. On October 4, 2013 Cooper had filed a law suit against Apollo in a Delaware Court. An answer and counterclaim was also filed by Apollo Tyres. In a partial ruling on Friday, November 8, 2013, the Delaware Court Judge has found that Apollo is not in breach of the merger agreement with Cooper Tyre.
The Court found that Apollo has used ‘reasonable best efforts’ to negotiate with the USW and that, contrary to Cooper’s claims, ‘nothing in Apollo’s conduct indicates buyer’s remorse.’ Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward.