Onkar Kanwar-led Apollo Tyres said on Wednesday its profit declined by 43.8 per cent to Rs 141.6 crore in the quarter ended June 30 this fiscal year 2019-20.
The company had reported a profit of Rs 251.8 crore in Q1 FY19. Revenue from operations inched up marginally by half per cent to Rs 4,272 crore as compared to Rs 4,249 crore.
"While the demand from the auto makers remained subdued, there was growth in the replacement market segment," said Chairman Onkar Kanwar.
"Moving ahead, I am hopeful of the markets recovering and the sales bouncing back around the festive season in India. In Europe, we are performing better than the industry which is likely to continue going forward as well," he said in a statement.
Apollo said its net sales in Q1 FY20 were recorded at Rs 4,272 crore. The sales remained positive aided by growth in the replacement segment, both in commercial vehicle and passenger vehicle segment in India.
While Indian operations' revenue was up 1 per cent at Rs 3,044 crore, European operations revenue also grew 5 per cent during the quarter.
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Kanwar said the company has invested close to Rs 4,000 crore at a new facility in Hungary and also earmarked Rs 3,800 crore for a greenfield project in Andhra Pradesh.
The company is committed to upgrading its existing manufacturing plant in Chennai, expanding truck tyre radial production to 12,000 units a day from earlier 6,000 units, he added.
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