Apollo Tyres looking for ‘healthy topline growth’ after 22% sales increase in FY 2017-18
During the final quarter of its 2017-18 financial year, net sales at Apollo Tyres rose 22 per cent year-on-year to Rs 39.82 billion (£437.3 million). Operating profit increased 33 per cent to Rs 5.59 billion (£61.4 million), while net profit in the three months to 31 March 2018 was up ten per cent to Rs 2.50 billion (£27.5 million).
The tyre maker reports that its operations in India and Europe both “continued with their growth momentum,” in the final quarter of the April to March financial year, led by a strong performance in the commercial vehicle segment in India, particularly with truck radials, and by the passenger vehicle category in Europe.
For the year to 31 March 2018, net sales were up by 12 per cent to Rs 146.74 billion (£1.6 billion). Sales in India accounted for 65 per cent of revenues and European sales for a further 31 per cent; the remaining four per cent of sales were attributed to “other geographies.” Operating profit amounted to Rs 17.68 billion (£194.1 million), down 12 per cent on the result for 2016-17, while net profit was Rs 7.24 billion (£79.5 million).
Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres Ltd, said: “This is an impressive performance by the company, with each of the key operations witnessing a healthy volume growth across product segments. Shortage of a key raw material, and the increasing cost of crude-based raw materials, did pose challenges for us. The raw material prices, as a basket, went up by more than ten per cent in the past fiscal. This cost push is likely to continue going forward as well, putting pressure on our margins. On the positive side, considering our capacity expansions in India and Europe, we are looking forward to a healthy growth in our topline.”