Apollo Tyres net sales up 11% year-on-year

The Board of Directors of Apollo Tyres Ltd today approved the company’s audited financial results for the 4^th quarter (January to March) and the financial year 2016-17. The Board recommended a dividend payout of 300%, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year.

Consolidated annual revenues, across operations grew 11% to close at Rs 130.6 billion (or Rs 13063 crores). During the same period the company reported a net profit of Rs 11 billion (Rs 1099 crores). Net sales for the 4^th quarter witnessed a growth of 10%, as compared to the same quarter last fiscal, to close at Rs 32.7 billion (Rs 3269 crores); net profit reported for Q4 was Rs 2.3 billion (Rs 228 crores).

Consolidated Annual Performance Highlights

FY2016-17 (April-March) vs FY2015-16

• Net sales grew 11% to close at Rs 130.6 billion from Rs 117.4 billion
• Operating profit closed at Rs 20 billion
• Net profit stood at Rs 11 billion for the fiscal

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “All our key operations have done well, despite the challenges in the last fiscal. Raw material prices, which have increased sharply quarter-on-quarter, continue to pose challenges for us, and have impacted our margins. There has been a healthy volume growth in the passenger vehicle segment across geographies in the past fiscal; however, the truck radial segment in India, while it has grown in the 4th quarter, has been impacted by the dumping of low cost tyres, especially from China, through the year.”

Quarter 4 Consolidated Performance Highlights

Q4 FY2016-17 (January-March) vs. Q4 FY2015-16

• Net sales grew 10% to reach Rs 32.7 billion as against Rs 30 billion
• Operating profit closed at Rs 4.2 billion
• Net profit reported for the quarter was Rs 2.3 billion

Added Onkar S Kanwar, Chairman, Apollo Tyres Ltd, “With tyres rolling out from our Hungarian Greenfield, and also from the expanded truck-bus radial facility in Chennai, we are looking forward to a good volume growth in the current fiscal, in addition to a gradual increase in our market share in Europe over the next few years.”