Apollo Tyres net profit surges 79% in Q1 FY13

Apollo Tyres net profit surges 79% in Q1 FY13

Apollo Tyres net profit surges 79% in Q1 FY13 Focus on enhanced product mix results in improved profitability The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the 1st quart



August 9, 2012

The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the 1st quarter of the financial year 2012-13. Earlier in the day, at the 39th Annual General Meeting, shareholders approved the annual dividend payout of 50% per share (0.50 per equity share), for the year ended March 31, 2012.

 Apollo Tyres Ltd’s 1st quarter sales increased by 12%, compared to the same quarter last year, to close the quarter at Rs 31.65 billion (Rs 3165 crore), while net profit grew by 79% to reach Rs 1.38 billion (Rs 138 crore) on the back of a more judicious product and customer mix. In India, Apollo has established a clear leadership in the growing truck-bus radial tyres, registering a growth of 60% in the quarter; while in South Africa passenger vehicle tyre sales moved higher by 32%. European Operations, even in a slowdown situation continued to maintain topline growth and profitability expanded by close to 50%.

 

Quarter 1 Consolidated Performance Highlights

Q1 FY 2012-13 (April -June) vs Q1 FY 2011-12 

  • Net sales grew by 12% to Rs 31.65 billion (Rs 3165 crore) from Rs 28.22 billion (Rs 2822 crore)
  • Operating profit stood at Rs 3.61 billion (Rs 361 crore) an increase of 48%, from Rs 2.44 billion (Rs 244 crore)
  • Net profit closed at Rs 1.38 billion (Rs 138 crore) up 79% from Rs 0.77 billion (Rs 77 crore)

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “For the past few quarters, we have been focusing on improving our product and customer mix across geographies. This has enabled us to post incremental revenue increases on a sequential basis in each of the quarters last year, eventually resulting in enhanced profitability in the 1st quarter of this year. Our leadership in the growing truck-bus radial segment in India along with an increased focus on the replacement market has allowed us to achieve this. The investments made in the Chennai plant two years back on both product and process technology are showing results and have provided us with a superior springboard for the future.” 

 

Cross Currency Reference Chart for Key Financials

Q1 FY 2012-13

Rs Billion

US$ Million

Euro Million

Net Sales

31.65

580

451

Operating Profit

3.65

66

52

Net Profit

1.38

25

20