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Apollo Tyres Q4 profit falls

Apollo Tyres Q4 profit falls

A 20.26% decline was registered in Apollo Tyres’ consolidated net profit for the fourth quarter ended March 2016 due to surging imports of Chinese tyres in the country.

The company’ s consolidated net profit for the quarter stood ta Rs245.16 crore from RsRs307.78 crore in the same period last year.

Net sales of the company also declined to Rs 2,966.11 crore for the fourth quarter compared  to Rs 3,133.93 crore during the same period of previous fiscal.

However, on for FY 15-16, the company’s net profit grew 11.8 % to Rs 1,093.1   crore compared to Rs977.60 crore in the corresponding year. Apollo Tyres’ net sales for the fiscal fell to Rs 11,707.79 crore compared to Rs 12,725.69 crore during the 2014-15 fiscal.

“Our revenue in India, in the past financial year, has largely been impacted by the Chinese imports. The imported truck-bus radials, especially from China, occupied close to 30 per cent of the Indian replacement market for radial truck tyres, which not only impacted the domestic truck-bus radials, but also the truck-bus bias segment,” Apollo Tyres Chairman Onkar S Kanwar said.

“With India having no anti-dumping duties in the past fiscal on Chinese tyres and numerous other geographies having imposed anti dumping duties on Chinese tyres, India has opened its market for low cost tyre imports from China, thereby putting at risk the huge investments made by the domestic tyre majors,” he said.

Besides, the company’s European operations have been impacted due to the SAP implementation, Kanwar said.

“Having said that, we are confident that the team would be able to resolve the challenges very soon. With the addition of Reifen.com, we are looking at maximising on the new business vertical. We believe that there is a huge potential in further developing this business model across geographies,” he added.

 

 

 

 

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