Apollo Tyres' net profit increases 12% annually

Apollo Tyres released its audited results for the fourth quarter and the financial year 2015-16, as the consolidated annual revenues, across operations closed at Rs 11,708 crore. During the same period, the company reported a net profit of Rs 1,093 crore, up 12% from Rs 980 crore in the previous year. Further, the company’s operating profit in FY2015-16 grew 3% to close at Rs 2,040 crore from Rs 1,980 crore.

The company’s net sales for the fourth quarter closed at Rs 2,966 crore, while the net profit for the same period was Rs 245 crore. Further, the operating profit closed at Rs 497 crore in the same period. The company’s board also recommended a dividend payout of 200%, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year. 

Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres, said, “Our revenue in India, in the past financial year, has largely been impacted by the Chinese imports. The imported truck-bus radials, especially from China, occupied close to 30% of the Indian replacement market for radial truck tyres, which not only impacted the domestic truck-bus radials, but also the truck-bus bias segment. With India having no anti-dumping duties, in the past fiscal on Chinese tyres, and numerous other geographies having imposed anti dumping duties on Chinese tyres, India has opened its market for low cost tyre imports from China, thereby putting at risk the huge investments made by the domestic tyre majors.” 

“Our European operations have been impacted due to the SAP implementation. Having said that, we are confident that the team will be able to resolve the challenges very soon. With the addition of Reifen.com, we are looking at maximising on the new business vertical. We believe that there is a huge potential in further developing this business model across geographies,” added  Kanwar.

On a consolidated level the break-up of revenues across geographies are: India – 69%; Europe – 26% and others – 5%. The tyre-maker also forayed into the Indian two-wheeler market in March this year with the launch of its Acti range of tyres.

Also read: Apollo Tyres targets growth in North America