Apollo Tyres Ltd on Friday reported a 45.5. per cent fall in net profit at Rs 184.24 crore in the third quarter of financial year 2014-15 compared with Rs 338.01 crore in the corresponding period last fiscal.
The total income for the company fell 12.76 per cent at Rs 3,104.82 crore compared with Rs 3,559.32 crore in the corresponding period last fiscal.
Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “We have maintained our profit margins, despite accounting for all charges related to the rescue plan of our South African subsidiary. This, as mentioned earlier, was prompted by the uncompetitive cost structure in the South African market, along with the continuous labour unrest and related issues. While we continue with our Trading Operations in South Africa, it is time for us to move forward and explore newer territories for the next phase of organisations’ growth.”
Business rescue proceedings were initiated in the second quarter by the company’s South African subsidiary, and the rescue plan was approved in November 2014, with the closure of the Durban plant, the company said in a statement, adding that all dues to bankers and external suppliers have been cleared, along with the retrenchment package of employees. “These payouts have been provisioned for, in the quarter under review, thereby adversely impacting the consolidated profit of the company,” it said.
The shares ended 5.93 per cent lower at Rs 213.40 at the BSE on Friday.