Apollo Tyres net profit grows by 12%
The Dollar Business Bureau
Apollo Tyres, which is the 17th largest tyre-maker in the world, disclosed its financial statement of the fourth quarter ending in March 2016 and of FY2016.
The net sales of the Gurgaon headquartered company stood at Rs.117 billion. The operating profit climbed to Rs.20.4 billion from Rs.19.8 billion recorded in FY2015, showing a 3% growth. The net profit of the firm stood at Rs10.9 billion from Rs.9.8 billion net profit registered in FY2015, indicating a 12% growth.
In Q4, the net profit of the firm, stood at Rs.2.5 billion. The company aims to be the 10th huge tyre-maker with revenues of $6 billion by 2016.
During the fourth quarter of FY16, Apollo tyres’ net sales and operating profit stood at Rs.30 billion and Rs.5 billion respectively.
Meanwhile, the Apollo Board has suggested a dividend disbursement of 200%. And this suggestion is yet to be ratified by the stakeholders. A decision to this effect may be taken by the stakeholders in the next Annual General Meeting.
While talking about the performance of the firm, Onkar Kanwar, Chairman, stated that Chinese imports had a great impact on the growth and revenue earned from the Indian market in FY2015. The truck-bus radial tyres imported from China occupied about 30% of truck-bus radials market of India.
With an absence of anti-dumping duties, the Indian market was left open for imports of tyres at cheaper prices. The Chinese dumping pushed the Indian tyre-makers’ investments to a risk in the last fiscal.
While Apollo Tyres earns 69% of its revenue from India, 26% is earned from European markets. Other geographies contribute 5% of the revenue.
The SAP implementation affected the operations of Apollo Tyres in the European market.
However, Apollo, which purchased German based Reinfencom at a staggering price of 45.6 million Euros, is looking ahead to maximizing its operations across geographies by developing its business model.
to success.