The Board of Directors of Apollo Tyres Ltd, today took on record the company’s unaudited results for the first quarter of the financial year 2008-09. Earlier in the day, at the 35th Annual General Meeting of the company, the shareholders approved the annual dividend payout of 50% per share for the year ended March 31, 2008.

Highlights: Q1 FY2008-09 (April-June) versus Q1 FY2007-08

* Consolidated revenue reported at Rs 13.2 billion up 15% from Rs 11.5 billion
* Consolidated net profit after tax at Rs 586.6 million up 7.3% from Rs 546.4 million
* Standalone India Operations revenue at Rs 10.7 billion up 23% from Rs 8.7 billion
* Standalone India Operations net profit after tax at Rs 486.3 million up 4% from Rs 467.6 mn
* Sharp rise in prices of raw materials precipitated price corrections across products

Commenting on the results, Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “These are probably one of the most challenging times we have faced as a company. The unnatural rise in crude and natural rubber prices, have had a cascading impact across all raw materials. Combined with prices, which are two or three times higher than what they were last year, we are facing the added problem of certain essential crude-based raw materials being unavailable even at higher prices. Merely by increasing product prices we will not be able to bridge this yawning gap. The only solution is to look internally, undertaking rigorous efficiency and economy drives across the organisation. That’s the silver lining. I believe this frugality will only strengthen the company in the long run.”

In the 12 months between June 2007 and July 2008, natural rubber prices have gone up by 61%, while crude prices are up 111%. Crude-based derivatives like rubber chemicals are costlier by 60%, while an item like poly butadiene rubber is currently facing a production crisis, despite a price increase of 115%.

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