Apollo Tyres: Net profit down 16.1% in last quarter
The Board of Directors of Apollo Tyres Ltd has recommended a dividend payout of 300 per cent, or Rs 3 per share, after approving the company’s financial results for the 2016-17 financial year. Total revenues for the 12-month period ending 31 March 2017 increased 10.9 per cent to Rs 143.2 billion (£1.7 billion), while consolidated revenue came to Rs 130.6 billion (£1.6 billion). Net profit declined 2.1 per cent to Rs 11.0 billion (£131.5 million).
Commenting on the results, company chairman Onkar S Kanwar said: “All our key operations have done well, despite the challenges in the last fiscal. Raw material prices, which have increased sharply quarter-on-quarter, continue to pose challenges for us, and have impacted our margins. There has been a healthy volume growth in the passenger vehicle segment across geographies in the past fiscal; however, the truck radial segment in India, while it has grown in the fourth quarter, has been impacted by the dumping of low cost tyres, especially from China, through the year.”
Total revenues rose 10.6 per cent year-on-year in the final quarter period to Rs 36.4 billion (£435.2 million), while net sales closed at Rs 32.7 billion. Net profit in the three months to 31 March 2017 was down 16.1 per cent year-on-year to Rs 2.3 billion (£27.5 million).
“With tyres rolling out from our Hungarian greenfield, and also from the expanded truck-bus radial facility in Chennai, we are looking forward to a good volume growth in the current fiscal, in addition to a gradual increase in our market share in Europe over the next few years,” added Kanwar.