Apollo Tyres: Full-year net profit up 73%

Favourable fourth quarter and full financial year 2022-23 financial results for Apollo Tyres, with revenue growth across all regions. Performance within both Indian and European operations was strong, with a recovery within India’s commercial vehicle segment particularly noteworthy.

The Board of Directors at Apollo Tyres thus recommend a dividend pay-out of Rs 4.00 per equity share and a special dividend of Rs 0.50 per equity share, totalling Rs 4.50 (450%) for the 2022-23 fiscal year, pending shareholder approval at the upcoming Annual General Meeting.

Fourth quarter

In terms of revenue, consolidated operations across different geographies recorded 12 per cent growth in the fourth quarter, reaching Rs 62.47 billion (£607.6 million). Operating profit rose 59.4 per cent year-on-year, to Rs 9.98 billion (£97.1 million). Net profit for the quarter amounted to Rs 4.27 billion (£41.5 million), a 277.9 per cent increase year-on-year.

Full year

Revenue for the full fiscal year 2022-23 grew by 17.3 per cent, to Rs 245.68 billion (£2.4 billion). Both Indian Operations and European Operations experienced nine per cent revenue growth (Indian rupees) in the fourth quarter, while for the entire year they respectively grew by 18 per cent and 11 per cent. Operating profit came to Rs 33.14 billion (£322.3 million), up 28.7 per cent. Net profit was 72.9 per cent higher year-on-year and amounted to Rs 11.05 billion (£107.5 million).

“Our performance, in terms of top line and bottom line is very much aligned with our internal targets,” commented Onkar Kanwar, chairman of Apollo Tyres Ltd. “Under challenging demand scenario across geographies, both India and Europe Operations have done well, and mostly ahead of the market. We have witnessed good recovery in the commercial vehicle segment in India. Company’s performance, going forward, will be positively impacted by the uptick in the replacement demand, especially in India, along with stable input costs.”