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NEW DELHI, June 26 (Reuters) - India's Apollo Tyres Ltd, the industry's second-ranked firm, announced on Wednesday its January-March net profit vaulted more than four times from a year ago, boosted by higher sales and greater operating efficiency.
The New Delhi-based tyremaker said in a statement fourth-quarter net profit rose to 185.1 million rupees ($3.8 million) or 5.1 rupees a share, from 44.8 million rupees or 1.23 rupees a share a year earlier.
Net sales rose 16 percent to 4.73 billion rupees from 4.07 billion.
"The improved performance is attributed to enhanced operating efficiencies, better working capital management and aggressive marketing," Onkar S. Kanwar, Apollo's managing director, said in a statement.
Apollo's board also recommended a dividend of 4.5 rupees per share for the year.
Buoyed by the results, Apollo's shares closed up 2.6 percent at 118.6 rupees at the Bombay Stock Exchange, while the benchmark index finished a percent lower.
The results showed Apollo's operating profit margin -- a key measure of efficiency -- jumped to 12.79 percent in the quarter from 7.66 percent in the year-ago period. Interest cost fell 26.8 percent.
In the full year to March, Apollo said net profit jumped 44.8 percent to 368.1 million rupees, or 10.14 rupees a share, on net sales that rose 17.6 percent to 17.1 billion rupees. Kanwar said the company would aim for sales of 20 billion rupees by 2005/06.
Apollo, which says it has a 25 percent share of the truck and bus tyre market, has been battling falling demand and prices as India's commercial vehicle sales dropped in the past two years.
Truck and bus tyre sales account for 72 percent of India's about 100 billion rupees a year tyre industry.
The firm said its sales of truck and bus tyres rose 20 percent in the year, dwarfing industry growth of two percent, while its sales of tractor tyres jumped 42 percent.
It said there were definite signs of an improvement in truck sales this year and a good monsoon forecast is expected to increase farm output which in turn will enhance freight movement and boost tyre demand further. ($1 = 48.84 rupees)