Despite weaker Q4, Apollo FY13 profits surge
For Apollo Tyres, the 2013 financial year ended on 31 March, and the tyre maker reports that its profit was up almost 50 per cent for the full year. Apollo’s net profit between 1 April 2012 and 31 March 2013 amounted to Rs 6.1 billion (£73.0 million), a 48.8 per cent year-on-year increase on the Rs 4.1 billion earned in the previous financial year. Net sales rose 5.3 per cent to Rs 127.9 billion (£1.5 billion) and operating profit increased 29.2 per cent to Rs 15.5 billion (£185.6 million).
Within the 12 month period, revenue at Apollo’s Indian operation grew four per cent year-on-year to Rs 85.1 billion (£1.0 billion), European operation revenue increased five per cent to Rs 29.9 billion (£357.9 million) and, despite what the company calls “challenging local circumstances”, revenue at Apollo’s African operation grew 15 per cent to Rs 15.0 billion (£179.6 billion). “Other” revenue accounted for the small remainder of the total consolidated revenue. On a consolidated level, the break-up of revenues across the three geographies are: India 65 per cent, Europe 23 per cent and South Africa 12 per cent.
Commenting on the results, company chairman Onkar S Kanwar said: “Our continued focus on improving our product and customer mix across geographies has helped us to hold on to our topline, despite the extremely challenging circumstances arising out of broader economic concerns. A positive for us is the growth in the commercial vehicle segment in India in the new fiscal, after witnessing flat (or negative) growth in the past year. I believe that the worst is behind us, and we should see improvement in both automotive and tyre sales going forward.”
During the year’s fourth quarter, between 1 January and 31 March 2013, net profit decreased 5.9 per cent to Rs 30.4 billion (£363.9 million). Operating profit grew 8.1 per cent to Rs 4.0 billion (£47.9 million), while net profit declined 9.6 per cent to Rs 1.4 billion (£73.0 million).
“As a company we continue to seek ways to move beyond the prevailing adverse business conditions and concentrating on newer markets and to provide our customers with better products that match their evolving needs,” Kanwar added.
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