Apollo Tyres lifts revenues despite “challenging” Europe

The Board of Directors at Apollo Tyres has approved the company’s unaudited financial results for July to September 2023 (Q2 2023-24). These show revenue of Rs 62.80 billion (£612.78 million) in revenue in the quarter ending 30 September, a 5.4 per cent year-on-year increase. Apollo Tyres shares that revenue growth was especially positive in its Indian Operations business.

Operating profit rose 62.9 per cent year-on-year, to Rs 11.60 billion (£113.19 million), and net profit amounted to Rs 4.74 billion (£46.25 million), up 164.5 per cent year-on-year.

“We remain steadfast in our commitment to achieving profitable growth, aligned with our long-term vision,” states Onkar Kanwar, chairman of Apollo Tyres Ltd. “Our operations have experienced positive revenue growth, and we are witnessing encouraging signs, particularly from India, indicating further demand improvement in the future.”

Europe

The company’s sales and manufacturing operations in Europe achieved revenues of 169 million euros between July and September 2023, 6.3 per cent lower than in the corresponding period of last year. The business’s EBITDA margin declined 119bps, to 14.1 per cent.

Apollo Tyres notes that in an environment of “sluggish” demand that resulted in the region’s passenger car and light truck (PCLT) shrinking by around seven per cent compared with the same period in 2022, its year-on-year market share in the PCLT segment grew by approximately 10bps. Off-highway tyre (OHT) segment market share increased by around 160bps year-on-year.

India

Revenue for Apollo Tyres’ business in its home market rose 3.6 per cent year-on-year in Q2 2023-24, to Rs 44.07 billion (£430.02 million). EBITDA margin jumped 881bps, to 19.1 per cent.

Overall volumes were up on a year-on-year basis, with both OEM and replacement segment volumes growing in “healthy double digits.” This positive development was partially negated by a steep decline in exports.

H1 2023-24

Consolidated revenue for April to September 2023 (H1 2023-24) amounted to Rs 125.24 billion (£1.22 billion), a 5.6 per cent increase over the same period of the prior fiscal year. Again, Indian Operations contributed strongly to revenue growth. Operating profit rose 57.7 per cent year-on-year, to Rs 22.11 billion (£215.74 million), while net profit increased 144.0 per cent, to Rs 8.71 billion (£84.99 million).