The audited financial results of Apollo Tyres Ltd for the 4th quarter (January to March) and the financial year 2015-16 has been approved by the company’s Board of Directors. The Board recommended a dividend payout of 200%, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year.
Consolidated annual revenues, across operations closed at Rs 117 billion (or Rs 11708 crores). During the same period the company reported a net profit of Rs 10.9 billion (Rs 1093 crores). Net sales of the company for the 4th quarter closed at Rs30 billion (Rs 2966 crores); net profit reported for Q4 was Rs 2.45 billion (Rs 245 crores).
Consolidated Annual Performance Highlights
FY2015-16 (April-March) vs FY2014-15
- Net sales stood at Rs 117 billion
- Operating profit grew 3% to close at Rs 20.4 billion from Rs 19.8 billion
- Net profit increased 12% at Rs 10.9 billion from Rs 9.8 billion in the previous year
Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, 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.”
Quarter 4 Consolidated Performance Highlights
Q4 FY2015-16 (January-March)
- Net sales stood at Rs 30 billion
- Operating profit closed at Rs 5 billion
- Net profit reported for the quarter was Rs 2.5 billion
Added Onkar S Kanwar, Chairman, Apollo Tyres Ltd, “Our European Operations have been impacted due to the SAP implementation. Having said that, we are confident that the team would 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.”
On a consolidated level, the break-up of revenues across geographies are 69% in India, 26% in Europe, and 5% in other geographies.
Some corporate highlights also include: the announcement of the company’s foray into two-wheeler tyre segment in India; the acquisition of Reifencom GmbH, Germany based tyre distributor with both online and offline presence; partnership with Manchester United was expanded to 129 countries globally; inauguration of 2nd Go The Distance pitch globally in Mumbai; awarding with Global Green Future Leadership Award 2016, under Best Waste Management category, and Asian CSR awards 2015, under Health Enhancement category; inauguration of new Apollo Zones, company’s branded retail outlets, in Jordan and Lebanon; introduction of special dual-branded tyres, Apollo & Manchester United, in the Middle East and North Africa markets; introduction of Apollo Amazer 4G Life, a high mileage passenger car tyre, for the Indian market; and inauguration of two Go The Distance Playgrounds, created using worn-out or end-of-life tyres for the village children just outside Chennai.
Source: Apollo Tyres