Apollo tyres standalone profit stood at Rs. 661.94million for Q4 ending March,2011

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The Board of Directors of Apollo Tyres Ltd on May 11,2011 approved the company"s audited financial results for the 4th quarter (January to March) and the financial year 2010-11.

The Unaudited results for the Quarter ended March 31, 2011

The Company has posted a net profit of Rs 661.94 million for the quarter ended March 31, 2011 as compared to Rs 1161.77 million for the quarter ended March 31, 2010. Total Income has increased from Rs 13215.87 million for the quarter ended March 31, 2010 to Rs 17786.77 million for the quarter ended March 31, 2011.

The Audited results for the Year ended March 31, 2011

The Company has posted a net profit of Rs 1982.53 million for the year ended March 31, 2011 as compared to Rs 4149.88 million for the year ended March 31, 2010. Total Income has increased from Rs 50477.44 million for the year ended March 31, 2010 to Rs 55171.77 million for the year ended March 31, 2011.

The Consolidated Results are as follows:

The Unaudited consolidated results for the Quarter ended March 31, 2011

The Group has posted a net profit of Rs 1923.00 million for the quarter ended March 31, 2011 as compared to Rs 2629.32 million for the quarter ended March 31, 2010. Total Income has increased from Rs 21567.46 million for the quarter ended March 31, 2010 to Rs 27467.85 million for the quarter ended March 31, 2011 registering a growth of 27%.

Speaking on the impact on profits, Mr Onkar S Kanwar mentioned, “The cost push has impacted our bottomline. While price increases have been resorted to, the lag effect impacts margins. This trend of high prices is expected to continue for the next few months. More importantly, it is also availability of natural rubber that is currently a cause of concern."

The Audited consolidated results for the Year ended March 31, 2011

The Group has posted a net profit of Rs 4401.63 million for the year ended March 31, 2011 as compared to Rs 6533.52 million for the year ended March 31, 2010. While annual revenues, taking into account the manufacturing bases in India, South Africa and the Netherlands, grew by 9% to reach a net sales of Rs 88940.03 million. Total Income has increased from Rs 81421.17 million for the year ended March 31, 2010 to Rs 88940.03 million for the year ended March 31, 2011.

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “This has been an extremely challenging year of spiraling raw material prices, especially natural rubber, and closures for over a quarter in one of our Indian plants, and an industry-wide strike in South Africa. These resulted in production and sales losses. Despite these, we have registered a very positive revenue growth across all our operations."

Natural rubber prices hit a record high of Rs 242/kg this year, witnessing an increase of 70% over the previous financial year. The average raw material (RM) prices for FY2010-11 were at Rs 125/kg, up 40% from FY2009-10. As per our estimates, the RM prices, especially natural rubber, will remain at this level for the next few months.

Sale of winter tyres in the recently ended winter season in Europe has been exceptionally strong for both Apollo and Vredestein brand of tyres. In June 2010, Apollo had launched its summer and winter tyres in Europe -- the first by an Indian tyre manufacturer. Winter tyres registered a complete sell-out, and order books are already full for the coming next winter season as well.

Exports continued to fare well. While South African operations registered a 24% growth, Apollo India continues to be the largest exporter of passenger car tyres with a 75% share. The state-of-the-art Chennai plant had commenced production early in the year and is expected to reach maximum Phase 1 capacity towards the end of this year.

On a consolidated level the break-up of revenues across the three geographies are: India 62%, Europe 25% and Africa 13%. For FY11, Indian Operations registered a growth of 9%, South Africa 8% and Europe 12% in revenue terms.

Apollo launched a range of summer and winter tyres in Europe early in the year and set up an extensive distribution network across the 4 critical countries of Germany, the UK, Netherlands and Italy. Market expansion continued out of both India to South and South East Asia and from South Africa to Southern America.

The Board recommended a dividend payout of 50%, subject to the approval at the forthcoming Annual General Meeting for the company later in the year.

Read more about: apollo tyres, automobile, bse, nse
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