Apollo maintains profit margins despite Africa costs
Apollo Tyres Ltd has reported consolidated revenue for the nine months (April to December) of FY15 closed at s 96.270 billion rupees (£1.018 billion; 1.369 billion euros; 1.552 billion). Pre-tax profits (EBITDA), without exceptional items, stood at 14.72 billion rupees (£155.682 million; 209.404 million euros; $237.372), up 0.9 billion rupees compared to the same period a year ago.
Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres Ltd hinted that it is time for the company to move its focus on to pastures new: “We have maintained our profit margins, despite accounting for all charges related to the rescue plan of our South African subsidiary. I am pleased to inform that we have been able to secure the best value for all the stakeholders. This, as mentioned earlier, was prompted by the uncompetitive cost structure in the South African market, along with the continuous labour unrest and related issues. While we continue with our Trading Operations in South Africa, it is time for us to move forward and explore newer territories for the next phase of organisations’ growth.”
Apollo explained that business rescue proceedings were initiated in the second quarter by the company’s South African subsidiary, and the company’s rescue plan was approved in November 2014, with the closure of the Durban plant. “All dues to Bankers and external suppliers have been cleared, along with the retrenchment package of employees”, executives said in the financial results statement.
The board also approved the appointment of Raj Banerji as the Chief Financial Officer of the company, taking over from Sunam Sarkar who was designated as president and Chief Business Officer in November 2014.