Apollo Tyres reports 65% increase in FY24 net profit

Apollo Tyres Ltd.’s Board of Directors has approved the company’s audited financial results for the fourth quarter and the full financial year 2023-24. The Board also recommended a dividend payout of Rs 6.00 per equity share (600%) on a face value of Re 1 each for FY24, pending shareholder approval at the upcoming Annual General Meeting.
Full-year consolidated performance
Revenue from operations increased by three per cent, reaching Rs 253,780 million (£2,417.71 million), compared to Rs 245,680 million (£2,340.93 million) in FY23. Operating profit surged by 34 per cent to Rs 44,470 million (£423.47 million), up from Rs 33,140 million (£315.94 million). Net profit rose by 65 per cent, closing at Rs 17,220 million (£164.08 million), compared to Rs 10,460 million (£99.70 million) in the previous fiscal year.
Quarterly consolidated performance (Q4 FY 2023-24)
Revenue from operations marginally increased to Rs 62,580 million (£596.60 million) from Rs 62,470 million (£595.65 million) in Q4 FY23. Operating profit rose to Rs 10,280 million (£97.99 million) from Rs 9,980 million (£95.01 million). Net profit for Q4 decreased to Rs 3,540 million (£33.75 million) from Rs 4,100 million (£39.06 million) in the same period last fiscal.
Performance in Europe above market
“Our performance in the past fiscal reflects our strategy of profitable growth,” states Onkar Kanwar, chairman, Apollo Tyres Ltd. “Our performance in Europe has been much better than the overall market, with market share gains across product categories. Going forward too, the demand scenario is looking good for different product segments across our key geographies. As per the Govt’s mandate, we have provisioned for the Extended Producer Responsibility (EPR), which has slightly impacted our profitability.”
Executive Changes
Satish Sharma, president of APMEA (Asia Pacific, Middle East, and Africa), has opted for early retirement, leading to his resignation as a wholetime director. Onkar Kanwar acknowledged Sharma’s 27 years of service and his contributions to Apollo Tyres’ growth.
Gaurav Kumar, the company’s chief financial officer, will become a wholetime director effective 1 June 2024, subject to shareholder approval. Welcoming the nomination, Onkar Kanwar commented on Gaurav’s insightful abilities to bring the financial impact of decisions to the forefront and expressed confidence that his presence on the Board would further strengthen the financial lens of the Board on all strategic decisions.
Independent Director Pallavi Shroff stepped down from the Board after completing her maximum two terms. Kanwar noted her long association with the company and her wise counsel and advice on key matters over the years.
The Board also approved the appointments of Berjis Desai and Sumit Dayal to the Board of Directors, effective 6 August 2024, pending shareholder approval. Desai, a retired senior partner from J. Sagar Associates, brings extensive legal expertise. Dayal, with over 34 years in international banking, will contribute his experience from Standard Chartered Bank and his roles in sustainable energy and Fin-Tech start-ups.
Comments