Net profit of Rs 670 crores in nine months of FY15

Net profit of Rs 670 crores in nine months of FY15

Maintains profit margins for the period; consolidated net profit impacted by the Rescue Plan of the South African subsidiary



February 6, 2015

The Board of Directors of Apollo Tyres Ltd today approved the company's unaudited results for the 3rd quarter of the financial year 2014-15.

Apollo Tyres Ltd's consolidated revenue for the nine months (April to December) of FY15 closed at Rs 9627 crores.Net Sales for the 3rd Quarter(October to December) closed at Rs 3091 crores. Commenting on the results, OnkarS 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. 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. 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."

It may be recalled that 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. 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.

9 months Consolidated Performance Highlights
FY2014-15 (April – December) vs FY 2013-14 (April – December)

  • Net sales closed at Rs 96.27 billion (Rs 9627 crores), in comparison to Rs 100.98 billion (Rs 10098 crores)
  • EBITDA, without exceptional items, stood at Rs 14.72 billion (Rs 1472 crores), as against Rs 13.82 billion (Rs
    1382 crores)*
  • Net profit, without exceptional items, closed at Rs 6.7 billion (Rs 670 crores) as compared to Rs 6.11 billion
    (Rs 611 crores) in the previous year*

Quarter 3 Consolidated Performance Highlights
FY2014-15 (October - December) vs Quarter 3 FY2013-14

  • Net sales closed at Rs 30.91 billion (Rs 3091 crores), as against 34.75 billion (Rs 3475 crores)
  • EBITDA, without exceptional items, stood at Rs 5.02 billion (Rs 502 crores), in comparison to Rs 5.07 billion
    (Rs 507 crores)*
  • Net profit reported, without exceptional items, was Rs 1.84 billion (Rs 184 crores), as compared to Rs 2.26
    billion (Rs 226 crores) in the same period last fiscal*

The Board also approved the appointment of Raj Banerji as the Chief Financial Officer of the company, taking over from Sunam Sarkar who was designated as President and Chief Business Officer in November 2014. Cross Currency Reference Chart for Key Financials:

 

Rs Billion

US$ Million

Euro Million

FY 2014-15

Q3

9M (Apr–Dec)

Q3

9M (Apr–Dec)

Q3

9M (Apr–Dec)

Net Sales

30.91

96.27

497.89

1583.45

399.53

1204.21

Operating Profit

5.02

14.72

80.94

242.18

64.66

184.18

Net Profit

1.84

6.70

29.52

110.22

24.00

83.82