Apollo’s 2011 sales topped US$ 2.5 billion

Apollo Tyres Ltd has released fourth quarter and full-year 2011 results that show revenues across operations in Asia, Africa and Europe, grew 37 per cent to 121.5 billion rupees (£1.409 billion; 1.81 billion euros; US$2.5 billion). According to the company, Indian operations grew fastest (up 49 per cent) while the firm’s Europe business saw a growth of 27 per cent. Apollo’s African operations witnessed 10 per cent growth.

However Apollo’s net profit came in at 1.57 billion rupees, 18.5 per cent under the equivalent 2010 figure. Nevertheless it was ahead of the consensus of analysts’ estimates of 1.5 billion rupees. Something else that will please investors is the fact that the company’s board recommended a dividend payout of 50 per cent to be approved by the shareholders at its annual general meeting later in the year.

Commenting on the results, Apollo Tyres Ltd chairman, Onkar S Kanwar said:  “Despite the challenging circumstances, we have crossed yet another milestone of US$2.5 billion in the year 2011-12. The conditions in our largest market – India, have not been easy. Same applies for the South African economy. But the positives are many primarily expansion of our passenger vehicle range and the launch of three ultra high performance tyres in Europe. In the critical truck and bus radial segment, we now enjoy a leadership position in India, and are poised for higher growth. The stability in the raw material prices, especially in the 2nd half of the fiscal, has eased some pressure on our margins.”

Hinting at investing in another plant – for which Poland has been touted as possible Eastern European site – Kanwar continued: “We are in a growth and planning mode across our operations, where we are working towards faster market expansion outside India; and are therefore, seeking ways to fulfil this higher demand with additional capacities.”