Apollo Tyres today reported a 91 per cent decline in its net profit at Rs 5.50 crore for the third quarter ended December 31, 2008, as compared to Rs 62.17 crore in same quarter of last fiscal.
"Profitability was impacted mainly because raw material were procured at higher price prices due to long-term contracts, while end product prices came down as global commodity prices dropped. Also, there was a slump in demand," Apollo Tyres Chief of Corporate Strategy Marketing and Director Sunam Sarkar said.
Total income dipped by 7.27 per cent to Rs 903.25 crore for the quarter under review from Rs 974.13 crore in the year-ago period.
"Going forward, we expect better profitability as margins have bottomed out in Q3. Demand is also expected to rise," Sarkar said.
During the quarter, turnover from exports rose 37 per cent over the year-ago period.
For the nine months ended December, Apollo Tyres reported a 61 per cent drop in its net profit at Rs 61.92 crore.
However, the total income during the nine-month period rose nearly 10 per cent to Rs 2,960.98 crore.
"The past six months have been very challenging for the automotive industry and our results are a reflection of the situation. Production cuts by OEMs have naturally also impacted us," Apollo Tyres Chairman and Managing Director Onkar S Kanwar said.
Shares of Apollo Tyres closed at Rs 18.95, down 0.79 per cent on BSE.
