Apollo Tyres FY 2021-22 financial results
Apollo Tyres reports revenue of Rs 209.48 billion (£2.22 billion) for the financial year ending 31 March 2021, 20 per cent higher than during the prior fiscal year. EBITDA declined 8.0 per cent year-on-year to Rs 25.74 billion (£272.59 million), with the EBITDA margin contracting 379 Bps to 12.3 per cent. Net profit stands at Rs 6.39 billion (£67.67 million).
During the fourth quarter of the year, consolidated revenues from operations across geographies grew 11 per cent to close at Rs 55.78 billion (£590.71 million). EBITDA fell 23 per cent year-on-year to Rs 6.26 billion (£66.29 million), with the EBITDA margin down 498 Bps to 11.2 per cent. Net profit for the January-to-March quarter is Rs 1.14 billion (£12.07 million).
“The unprecedented rise in input costs in FY22 have taken a toll on our margins, despite our internal cost control measures and multiple rounds of price corrections undertaken in different product categories,” states Onkar Kanwar, chairman of Apollo Tyres Ltd. “The robust demand witnessed by our European operations, especially in the fourth quarter, and the healthy growth in exports out of India, contributed to the increase in our consolidated revenues. The silver lining for us is the recent uptick in demand in India, especially in the CV segment.”
European operations
Revenues from European operations grew 26 per cent year-on-year during the fourth quarter and amounted to 169 million euros, approximately 31 per cent of the company total. The EBITDA margin contracted 270 Bps during this period to 15.4 per cent.
Apollo Tyres reports that its passenger car and light truck (PCLT) tyre business in Europe, which is primarily driven by the Vredestein brand, grew faster than forecasted due to pricing actions. Sales of all-season tyres continued to outgrow the overall market.
UHP and UUHP products accounted for approximately 43 per cent of PCLT sales in the fourth quarter, up from around 40 per cent a year ago.
Apollo Tyres also gained market share in Europe’s truck and bus radial and off-highway tyre markets despite implementing price increases of between four and seven per cent.
India operations
According to Apollo Tyres, its business in India during the fourth quarter of the 2022 financial year was initially punctuated by COVID-19 and later by steep commodity inflation. The company adjusted priced to negate the impact of rising costs, with prices for aftermarket tyres increasing three to four per cent.
Fourth quarter revenues rose ten per cent year-on-year to Rs 39.88 billion (£422.33 million). The EBITDA margin sank 602 Bps to 9.4 per cent.
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