Earnings: Apollo Tyres Q3 net declines 45% to Rs 184 cr

New Delhi: Apollo Tyres today posted a 45.49 percent decline in its consolidated net profit at Rs 184.24 crore for the third quarter ended December 31, hit by provisions made for the rescue plan of its South African unit. [caption id=“attachment_1159183” align=“alignleft” width=“380”]  Reuters[/caption]The company had posted a net profit of Rs 338.01 crore for the same period of previous fiscal. Net sales of the company declined to Rs 3,091.55 crore for the third quarter, as against Rs 3,475.12 crore during the same period of previous fiscal, Apollo Tyres Ltd said in a statement. The company had initiated business rescue proceedings in the second quarter for its South African subsidiary, and the rescue plan was approved in November 2014, with the closure of the Durban plant. “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,” the company said. Commenting on the results, Apollo Tyres Chairman Onkar S Kanwar said the company has maintained its profit margins, despite accounting for all charges related to the rescue plan of South African subsidiary. “I am pleased to inform that we have been able to secure the best value for all the stakeholders. 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,” he added. He further added: “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”. On a standalone basis, the company posted a net profit of Rs 161.94 crore, up 46.81 percent, as compared to Rs 110.30 crore in the same period of previous fiscal. In a separate filing, Apollo Tyres said its board has approved the appointment of Raj Banerji as CFO in place of Sunam Sarkar. Sarkar has been moved to a new position of President and Chief business Officer and relocated to Singapore. Apollo Tyres shares closed at Rs 213.40 apiece on the BSE, down 5.93 percent from its previous close. PTI