Apollo Tyres FY13 profit increases 50%

Apollo Tyres FY13 profit increases 50%

Net sales for the company increases to Rs 127.9 billion



May 10, 2013

The Board of Directors of Apollo Tyres Ltd today approved the company’s audited financial results for the 4th quarter (January to March) and the financial year 2012-13. The Board recommended a dividend payout of 50%, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year.

Consolidated annual revenues, across operations in Asia, Africa and Europe, increased 5% to reach Rs 127.9 billion (or Rs 12,794.6 crores). During the same period the net profit for the company surged 50% to reach Rs 6.1 billion. The Indian Operations’ revenue grew 4% this year as compared to previous year; Europe Operations increased by 5% where as the African Operations’ grew 15%, despite challenging local circumstances.
 

Consolidated Annual Performance Highlights

FY2012-13 (April-March) vs FY2011-12

  • Net sales surged by 5% to Rs 127.9 billion from Rs 121.5 billion
  • Operating profit grew 29% to reach Rs 15.5 billion from Rs 12 billion
  • Net profit increased 50% to Rs 6.1 billion from Rs 4.1 billion in the previous year

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “Our continued focus on improving our product and customer mix across geographies has helped us to hold on to our topline, despite the extremely challenging circumstances arising out of broader economic concerns. A positive for us is the growth in the commercial vehicle segment in India in the new fiscal, after witnessing flat (or negative) growth in the past year. I believe that the worst is behind us, and we should see improvement in both automotive and tyre sales
going forward.”

 

Quarter 4 Consolidated Performance Highlights

Q4 FY2012-13 (January-March) vs Q4 FY2011-12

  • Net sales closed at Rs 30.4 billion from Rs 32.3 billion
  • Operating profit grew 6% to Rs 4 billion from Rs 3.7 billion
  • Net profit stood at Rs 1.42 billion from Rs 1.57 billion in the same quarter the previous year

Added Onkar S Kanwar, Chairman, Apollo Tyres Ltd, “As a company we continue to seek ways to move beyond the prevailing adverse business conditions and concentrating on newer markets and to provide our customers with better products that match their evolving needs.”

Cross Currency Reference Chart for Key Financials: 

 

 

Rs Billion

Rs Crores

US$ Million

Euro Million

FY 2012-13

Q4

FY13

Q4

FY13

Q4

FY13

Q4

FY13

Net Sales

30.4

127.9

3037.7

12794.6

559.7

2345.5

423

1821.1

Operating Profit

  4.0

15.5

399.7

1551.1

73.6

284.3

55.8

220.8

Net Profit

  1.4

6.1

141.8

612.6

26.1

112.3

19.7

87.2

 

ANNUAL CORPORATE HIGHLIGHTS

  • On a consolidated level the break-up of revenues across the three geographies are: India 65%, Netherlands 23% and South Africa 12%
  • Apollo was conferred with Tire Manufacturer of the Year 2012 by Tire Technology International
  • Apollo Tyres opened its Global PV R&D Centre in Enschede, the Netherlands; this is further to the company establishing a global R&D structure to synergise resources across operations for critical product segments
  • Enterprise Asia awarded Apollo with Asia Responsible Entrepreneurship Awards (AREA) 2012 South Asia, in the health promotion category, for the HIV-AIDS initiative
  • Mahindra & Mahindra chose Apollo’s specially developed tyres, with low rolling resistance, for its electric car E2O
  • Apollo Tyres once again proved its product and technology leadership in the commercial vehicle segment by launching new cross ply Steer Axle tyres, XMR, for extra mileage and durability
  • Eleventh International Mining & Machinery Exhibition 2012 in Kolkata saw the introduction of Apollo XTRAX 40.00-57, the largest tyre produced in India
  • Onkar S Kanwar, Chairman, Apollo Tyres Ltd conferred with Ernst & Young Entrepreneur of the Year - Manufacturing
  • Giugiaro Design won the Good Design Award 2012 from the Museum of Architecture & Design and the European Centre for Architecture Art Design & Urban Studies for Apollo Vredestein’s Ultrac Vorti project
  • Part of the EU-Pearls project, Apollo Vredestein produced the first tyre made of European natural rubber -- Russian Dandelion and Guayule
  • In the last fiscal, Apollo Tyres launched its biggest ever communication campaign -- ‘YOU-FIRST’