Following internal discussions and review of a commissioned report produced by Ernst & Young, the Nominations & Remuneration Committee (NRC) within the Board of Directors at Apollo Tyres Ltd. has recommended changes to the compensation packages Onkar and Neeraj Kanwar receive from the company.
In its 2018 Autumn Imperial Decorations, the Government of Japan has conferred upon Onkar S Kanwar the Order of the Rising Sun, Gold and Silver Star. The chairman of Apollo Tyres Ltd. received this recognition for his contributions towards strengthening the economic relations between Japan and India, and for promoting Japanese company’s entry into the Indian market.
Hungary has bestowed the Officers Cross (Civilian Division) of the ‘Order of Merit’ upon Onkar S Kanwar, chairman of Apollo Tyres Ltd. This award was conferred in recognition of Kanwar’s work towards strengthening Hungarian-Indian economic relations through the company’s investment in Hungary.
During the final quarter of its 2017-18 financial year, net sales at Apollo Tyres rose 22 per cent year-on-year to Rs 39.82 billion (£437.3 million). Operating profit increased 33 per cent to Rs 5.59 billion (£61.4 million), while net profit in the three months to 31 March 2018 was up ten per cent to Rs 2.50 billion (£27.5 million).
Although Apollo Tyres Ltd. reports that its sales were up in the third quarter of its current financial year and exceeded Rs 40 billion for the first time ever, net profit for the period was lower year-on-year. The tyre maker’s net sales increased 16.9 per cent year-on-year in the three months to 31 December 2017 to Rs 40.16 billion (£451.1 million), while operating profit was up 1.1 per cent to Rs 5.43 billion (£61.0 million). Net profit was down -17.2 per cent to Rs 2.45 billion (£27.5 million).
After opening its new European factory last year, Apollo Tyres is now focusing on expanding its manufacturing footprint at home. A ceremony was held today to lay the foundation stone of the tyre maker’s fifth plant in India and seventh facility worldwide. The new factory is located in Chinnapanduru, Andhra Pradesh state, and is expected to enter operation in mid-2020. Apollo Tyres is investing close to Rs 18 billion (£209.4 million) in the first phase of the new plant project.
Higher sales didn’t lead to higher profits for Apollo Tyres in the first half of its current financial year. In the six months to 30 September, the tyre maker’s revenue rose 5.0 per cent to Rs 66.8 billion (£784.1 million) and operating profit stood at Rs 6.7 billion (£78.6 million). Net profit, at Rs 2.3 billion (£27.0 million), was down 59.1 per cent from the first half of the previous financial year.
High raw material prices strongly influenced the bottom line at Apollo Tyres Ltd in the three months to 30 June 2017. Although net sales, at Rs 32.58 billion (£391.0 million), were in line with those achieved in the corresponding quarter a year earlier, operating profit declined 50.3 per cent to Rs 2.82 billion (£33.8 million) and net profit was down 72.0 per cent to Rs 880.3 million (£10.6 million).
The Board of Directors of Apollo Tyres Ltd has recommended a dividend payout of 300 per cent, or Rs 3 per share, after approving the company’s financial results for the 2016-17 financial year. Total revenues for the 12-month period ending 31 March 2017 increased 10.9 per cent to Rs 143.2 billion (£1.7 billion), while consolidated revenue came to Rs 130.6 billion (£1.6 billion). Net profit declined 2.1 per cent to Rs 11.0 billion (£131.5 million).
The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the third quarter of the company’s 2016-17 financial year. Consolidated revenue in the three months to 31 December 2016 amounted to Rs 34.35 billion (£404.8 million), a year-on-year rise of 17 per cent, while operating rose slightly to Rs 5.37 billion (£63.3 million) and net profit increased by six per cent year-on-year to Rs 2.96 billion (£34.9 million). The tyre maker states that it witnessed good volume growth in both its Indian and European operations in the third quarter, led by the passenger car tyre segment.
Last week, Apollo Tyres formally inaugurated a second Global R&D Centre to complement its existing global research and development facility in the Netherlands, which opened in 2013. The new centre is located just outside the city of Chennai, in Southern India, and was inaugurated by company chairman Onkar S Kanwar and vice-chairman and managing director Neeraj Kanwar in the presence of members of the company’s Supervisory Board and Management Board on 9 November.
The market for motorcycle and scooter tyres in India is massive – around 120 million two-wheeled vehicles ply the country’s roads. To supply this large and growing market – the two-wheeler segment is said to be increasing at 8.5 per cent CAGR – and in response to its requests from its partners, Apollo Tyres has introduced the company’s first-ever products for this segment. The new Acti line-up covers around 85 per cent of replacement market demand for two-wheeler tyres in India.
In the three months to 31 December 2015 – the third quarter of its 2015-16 financial year – Apollo Tyres achieved sales of Rs 29.29 billion (£298.0 million), 3.7 per cent less than a year earlier. Third quarter EBITDA stood at Rs 5.12 billion (£52.1 million), up 2.0 per cent year-on-year, while net profit rose 51.6 per cent to at Rs 2.79 billion (£28.4 million).
Only quite recently Apollo Tyres Ltd gave word that truck and bus tyre production capacity at its factory Chennai, India would increase from 6,000 to around 9,000 tyres per day, yet the company has now announced a further truck and bus tyre capacity boost for the plant. A filing submitted to the BSE following a meeting of Apollo’s Board of Directors on 11 August shares the tyre maker’s plan of outlaying a capital expenditure of Rs 12 billion (£118.7 million) to further expand truck and bus radial capacity in Chennai from the currently planned 8,900 tyres per day to 12,000 tyres per day.
Unaudited financial results for the first quarter of Apollo Tyre Ltd’s 2015-16 financial year were released yesterday, and these show a year-on-year rise in the company’s operating and net profits despite lower net sales.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.