The Board of Directors of Apollo Tyres Ltd have approved the company’s audited financial results for the fourth quarter (January to March) and the financial year 2017-18. The Board recommended a dividend payout of 300%, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year.
Commenting on the results, Mr. Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “This is an impressive performance by the company, with each of the key operations witnessing a healthy volume growth across product segments. Shortage of a key raw material, and the increasing cost of crude-based raw materials, did pose challenges for us. The raw material prices, as a basket, went up by more than 10% in the past fiscal. This cost push is likely to continue going forward as well, putting pressure on our margins. On the positive side, considering our capacity expansions in India and Europe, we are looking forward to a healthy growth in our topline.”
Consolidated revenues, across operations, for the fourth quarter of FY18 grew 22% to close at Rs. 3982 crores. During the same period the company reported a net profit of Rs. 250 crores, which was up 10% as compared to same period last fiscal. Net sales for the full year witnessed a growth of 12%, as compared to the last fiscal, to close at Rs 14674 crores; net profit reported for the full year of FY18 was Rs 724 crores.
Quarter 4 Consolidated Performance Highlights
Q4 FY2017-18 (January-March) vs. Q4 FY2016-17
- Net sales grew 22% to reach Rs 3982 crores as against Rs 3269 crores
- Operating profit was up 33% at Rs 559 crores as against Rs 420 crores
- Net profit reported grew 10% to close at Rs 250 crores for the quarter as against Rs 228 crores
Both, Indian and European Operations, continued with its growth momentum and registered a revenue growth upwards of 20% in the last quarter of the financial year 2017-18, led by a strong performance in the commercial vehicle segment, especially truck radials, in India, and passenger vehicle category in Europe.
Consolidated Annual Performance Highlights
FY2017-18 (April-March) vs FY2016-17
- Net sales grew 12% to close at Rs 14674 crores from Rs 13063 crores
- Operating profit closed at Rs 1768 crores
- Net profit stood at Rs 724 crores for the fiscal
Annual Corporate Highlights
- On a consolidated level the break-up of revenues across geographies are: India – 65%; Europe – 31% and Other Geographies – 4%
- Apollo Tyres was ranked in top 10 in India’s Best Workplaces in Manufacturing for 2018
- The company started supplying its tyres to the European OEMs — VW, Ford and SEAT
- Apollo became the Global Tyre Partner for Crystal Palace Football Club
- Apollo Tyres laid the foundation stone of its Andhra Pradesh greenfield facility
- The company flagged off Mobile Medical Units in India for the health check of truckers
- Apollo Tyres deepened its connect with football by partnering with Indian Super League (ISL), became the principal sponsor for ISL team, Chennaiyin FC and the title sponsor of I-league team, Minerva Punjab FC
- The company, along with Rubber Research Institute of India, received the patent for special grade Epoxide Natural Rubber (ENR)
- The employees at Apollo Tyres, under its environment initiative, planted 100,000 trees in Tiruvannamalai district of Tamil Nadu
- Apollo Tyres relocated its US headquarters to Atlanta
- With the introduction of two-wheeler tyres in Sri Lanka, the company became a full-range player in the island nation
- On the occasion of International Women’s Day, Apollo Tyres inaugurated Rubber Sheet Making Unit in Kottayam, Kerala for the rubber tapper’s wives, which would be run by them only.