Apollo Tyres net profit surges 19% in Q1

Apollo Tyres net profit surges 19% in Q1

Focus on better product and customer mix results in improved profitability



August 7, 2013

The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the 1st quarter of the financial year 2013-14. Earlier in the day, at the 40th Annual General Meeting, shareholders approved the annual dividend payout of 50% per share (0.50 per equity share), for the year ended March 31, 2013.

For the quarter ended June 30, 2013, Apollo Tyres Ltd, on a consolidated level, reported a profit of Rs 166 crores on the net sales of Rs 3190 crores. Despite the sluggishness in the automotive sector, the company has managed to hold on to its revenues. Apollo Tyres’ European Operations, continuing its strong performance, registered an increase of 6% in revenues in Q1 FY14, as compared to the same period last year. The net sales for company’s South African operations also grew 13% amidst concerns of growing imports of tyres from China.

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability.”

Quarter 1 Consolidated Performance Highlights

Q1 FY2013-14 (April - June) vs Q1 FY2012-13

  • Net sales stood at Rs 31.9 billion (Rs 3190 crore) from Rs 31.6 billion (Rs 3165 crore)
  • Operating profit was at Rs 4.04 billion (Rs 404 crore) an increase of 12%, from Rs 3.6 billion (Rs 361 crore)
  • Net profit grew 19% to Rs 1.66 billion (Rs 166 crore) from Rs 1.39 billion (Rs 139 crore)


Mr Kanwar further added, “During the last quarter, we also announced the acquisition of US-based Cooper Tire and Rubber Company. With a rich history of working in multiple locations around the world and with diverse cultures, which is based on our core values, we remain committed to closing this compelling transaction. Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by Q3 of this fiscal.”
 

Cross Currency Reference Chart for Key Financials:

 

FY 2012-13

Rs Billion

Rs Crores

US$ Million

Net Sales

31.90

571.7

437.7

Operating Profit

4.04

72.5

55.5

Net Profit

1.66

29.7

22.8