Apollo Tyres reports revenue, profitability growth for FY 2020/21
Apollo Tyres has recorded strong growth in the fourth quarter of its 2020/21 financial year (April 2020 to March 2021). Consolidated revenues from global operations grew 39 per cent to close at 50.26 billion rupees (£486 million – all conversions based on rates on 14 May) in quarter four. For the full year of FY21, it grew 6 per cent to close at 173.97 billion rupees (£1.68 billion). Apollo reports that operating profit (EBITDA excluding other income) was up 70 per cent in Q4, while for the full year, it was up 44 per cent.
For FY2020-21 (April-March) versus FY2019-20, Apollo’s operating profit (excluding other income) was 27.97 billion rupees (£270.68 million), versus 19.39 billion rupees (£187.69 million). Net profit stood at 9.58 billion rupees (£92.72 million), as compared to 4.76 billion rupees (£46.07 million).
Other quarter four (January-March 2021 versus January-March 2020) details show operating profit (excluding other income) at 8.15 billion rupees (£78.88 million) grew rapidly from 4.80 billion rupees (£46.46 million) in Q4 FY19/20. Net profit for the quarter (excluding exceptional item) closed at Rs 2.89 billion rupees (£27.97 million) as compared to Rs 0.78 billion rupees (£7.55 million) in Q4 the previous year.
Apollo Tyres’ Board of Directors approved the company’s financial results for the fourth quarter (January to March) and the financial year 2020-21 on 12 May. The Board recommended a dividend payout of 350 per cent, to be approved by the shareholders at the forthcoming Annual General Meeting, later in the year.
Apollo reports that Indian operations were robust “in all segments of the market,” with an increase of 49 per cent in its Q4 revenue (from operations), closing at 36,30 billion rupees (£351.16 million). For the full year, it grew 6 per cent to close at 117.33 billion rupees (£1.14 million). Similarly, European Operations’ revenue was up 20 per cent in Q4 to close at 14.04 billion rupees (£135.86 million), whereas for the full year, it increased 8 per cent to close at 56.75 billion rupees (£549.31 million).
Onkar Kanwar, chairman, Apollo Tyres Ltd, said: “What started as an extremely challenging year, with lockdowns across geographies, ended on a very healthy note for us with robust revenue growth across market segments and geographies. Ensuring business continuity along with the safety of our employees have been of paramount importance throughout this pandemic, and considering the current situation, especially in India, we cannot let our guard down. The year ahead is full of challenges, with demand getting impacted due to the lockdowns, and pressure on margin front, due to the rising raw material prices.”