Apollo Tyres Ltd.’s consolidated annual revenues across operations in Asia, Africa and Europe grew 37 per cent to reach Rs. 121.5 billion ($2.5 billion or Rs. 12,153 crores) in 2011-12. Indian Operations’ revenue grew 49 per cent as compared to the previous year. Europe saw a growth of 27 per cent, while African operations also witnessed a 10 per cent growth despite challenging local circumstances.
Operating profit grew 18 per cent to reach Rs. 12 billion from Rs. 10.2 billion, and net profit stood at Rs. 4.1 billion (Rs. 4.4 billion). The Board of Directors has recommended a dividend payout of 50 per cent.
Commenting on the results, Mr. Onkar S. Kanwar, Chairman, Apollo Tyres Ltd., said: “Despite the challenging circumstances, we have crossed yet another milestone of $2.5 billion in 2011-12. The conditions in our largest market, India, have not been easy. The same applies for the South African economy. But the positives are many – primarily expansion of our passenger vehicle range and the launch of 3 ultra high performance tyres in Europe. In the critical truck and bus radial segment, we now enjoy a leadership position in India, and are poised for higher growth. The stability in the raw material prices, especially in the 2nd half of the fiscal, has eased some pressure on our margins.”
Net sales for the fourth quarter (January-March) of 2011-12 rose by 18.4 per cent to Rs. 32.3 billion from Rs. 27.3 billion. Operating profit grew 10.4 per cent to Rs. 3.87 billion from Rs. 3.5 billion and net profit stood at Rs. 1.57 billion against Rs. 1.9 billion in the same quarter the previous year.
Added Mr. Kanwar: “We are in a growth and planning mode across our operations, where we are working towards faster market expansion outside India, and are therefore seeking ways to fulfill this higher demand with additional capacities.”
Corporate highlights
Apart from the existing markets in Germany, the UK, Italy and the Netherlands, Apollo branded tyres are now also being sold in Switzerland, Austria, Denmark and Greece in Europe. Export revenue out of India grew 67 per cent contributed by off-highway tyres and over 30 per cent increase in passenger and commercial vehicle tyres exports. On an average, raw material prices went up 23 per cent from Rs. 131 per kg last fiscal to Rs. 161.
After making Dubai its Middle East hub, the company opened its first branded retail outlet outside the country in Dubai. This Apollo Super Zone sells both passenger vehicle and commercial vehicle tyres.
Further, the ultra high performance tyre, Apollo Aspire 4G was launched at the 82nd Geneva Motor Show. Apollo Vredestein launched two new ultra high performance tyres on the Hungaroring F1 circuit in Budapest.
Apollo Direct, a toll-free customer number for passenger vehicle tyres, was introduced in India. Similar to the full-service branded retail outlets for passenger vehicle customers, the company opened two Apollo CV Zones, one each in Delhi and Tamil Nadu.