Apollo profits 79% up in April-June quarter
In addition to discussing strategic plans for the coming years, today’s Apollo Tyres annual general meeting saw the release of the company’s approved unaudited results for the first quarter of India’s 2012-13 financial year, the three months to 30 June 2012. During the quarter, net sales rose 12 per cent to Rs 31.65 billion (£367.5 million) and operating profit increased 48 per cent year-on-year to Rs 3.61 billion (£41.9 million). Net profit jumped 79 per cent to Rs 1.38 billion (£16.0 million); Apollo attributes this rise to “a more judicious product and customer mix.”
The tyre maker says it has “established a clear leadership” within India’s growing truck-bus radial tyre sector and registered a sector growth of 60 per cent in the quarter. In South Africa, passenger vehicle tyre sales rose 32 per cent while the company’s European operations, despite economic conditions within the region, continued to maintain topline growth and profitability expanded by close to 50 per cent.
Commenting on the results, company chairman Onkar S Kanwar said: “For the past few quarters, we have been focusing on improving our product and customer mix across geographies. This has enabled us to post incremental revenue increases on a sequential basis in each of the quarters last year, eventually resulting in enhanced profitability in the first quarter of this year. Our leadership in the growing truck-bus radial segment in India along with an increased focus on the replacement market has allowed us to achieve this. The investments made in the Chennai plant two years back on both product and process technology are showing results and have provided us with a superior springboard for the future.”
Shareholders at the meeting also approved an annual dividend payout of 50 per cent per share (0.50 per equity share) for the year ended 31 March 2012.