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.
Apollo Tyres reports improved sales and significantly higher net profit in the three months to 31 December 2020, the third quarter of its 2020-21 financial year. The bottom-line result for the year to date is admittedly less impressive, as net profits have been watered down by costs associated with the restructuring of the Apollo Vredestein facility in Enschede, the Netherlands.
Apollo Tyres had to accept a drop in its turnover and earnings in the half-year to 30 September 2020, with the notable exception of sales in Europe. The company’s global sales in the first half of its current April 2020 to March 2021 financial year were Rs 70.62 billion (£728.85 million), 13.9 per cent less than the sales it gained a year earlier. Net profit dropped 71.1 per cent year-on-year to Rs 650 million (£6.71 million).
Top management at Apollo Tyres have announced they’ve accepted a pay cut during the market difficulties brought about by the COVID-19 pandemic. The tyre maker says it is also preparing to implement further measures.
Private equity firm Warburg Pincus is investing around £117 million in Apollo Tyres via a subsidiary. On 26 February, the tyre maker’s Board of Directors approved the issue of up to 108 million compulsorily convertible preference shares, each with a face value of Rs 100, to Emerald Sage Investment Ltd. The transaction is subject to shareholder and regulatory approvals.
Following internal discussions and review of a commissioned report produced by Ernst & Young, the Nominations & Remuneration Committee (NRC) within the Board of Directors at Apollo Tyres Ltd. has recommended changes to the compensation packages Onkar and Neeraj Kanwar receive from the company.
In its 2018 Autumn Imperial Decorations, the Government of Japan has conferred upon Onkar S Kanwar the Order of the Rising Sun, Gold and Silver Star. The chairman of Apollo Tyres Ltd. received this recognition for his contributions towards strengthening the economic relations between Japan and India, and for promoting Japanese company’s entry into the Indian market.
Hungary has bestowed the Officers Cross (Civilian Division) of the ‘Order of Merit’ upon Onkar S Kanwar, chairman of Apollo Tyres Ltd. This award was conferred in recognition of Kanwar’s work towards strengthening Hungarian-Indian economic relations through the company’s investment in Hungary.
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).
Although Apollo Tyres Ltd. reports that its sales were up in the third quarter of its current financial year and exceeded Rs 40 billion for the first time ever, net profit for the period was lower year-on-year. The tyre maker’s net sales increased 16.9 per cent year-on-year in the three months to 31 December 2017 to Rs 40.16 billion (£451.1 million), while operating profit was up 1.1 per cent to Rs 5.43 billion (£61.0 million). Net profit was down -17.2 per cent to Rs 2.45 billion (£27.5 million).
After opening its new European factory last year, Apollo Tyres is now focusing on expanding its manufacturing footprint at home. A ceremony was held today to lay the foundation stone of the tyre maker’s fifth plant in India and seventh facility worldwide. The new factory is located in Chinnapanduru, Andhra Pradesh state, and is expected to enter operation in mid-2020. Apollo Tyres is investing close to Rs 18 billion (£209.4 million) in the first phase of the new plant project.
Higher sales didn’t lead to higher profits for Apollo Tyres in the first half of its current financial year. In the six months to 30 September, the tyre maker’s revenue rose 5.0 per cent to Rs 66.8 billion (£784.1 million) and operating profit stood at Rs 6.7 billion (£78.6 million). Net profit, at Rs 2.3 billion (£27.0 million), was down 59.1 per cent from the first half of the previous financial year.
High raw material prices strongly influenced the bottom line at Apollo Tyres Ltd in the three months to 30 June 2017. Although net sales, at Rs 32.58 billion (£391.0 million), were in line with those achieved in the corresponding quarter a year earlier, operating profit declined 50.3 per cent to Rs 2.82 billion (£33.8 million) and net profit was down 72.0 per cent to Rs 880.3 million (£10.6 million).
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).
The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the third quarter of the company’s 2016-17 financial year. Consolidated revenue in the three months to 31 December 2016 amounted to Rs 34.35 billion (£404.8 million), a year-on-year rise of 17 per cent, while operating rose slightly to Rs 5.37 billion (£63.3 million) and net profit increased by six per cent year-on-year to Rs 2.96 billion (£34.9 million). The tyre maker states that it witnessed good volume growth in both its Indian and European operations in the third quarter, led by the passenger car tyre segment.