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Apollo’s 4Q Sales Are Up While Income Drops

Posted on May 8, 2017

Apollo Tyres Ltd. posted net income of 2.3 billion rupees on net sales of 32.7 billion rupees for its fourth quarter ended March 31, 2017. That compares to income of 2.5 billion rupees on net sales of 29.7 billion rupees for the year-ago quarter.

Based on the exchange rate, Apollo recorded net income of $34.1 million on net sales of $487.4 million for 4Q 2017, according to the company. Apollo’s income-to-sales ratio was 7.0%.

For its fiscal year ended March 31, 2017, Apollo posted net income of 11.0 billion rupees ($163.0 million) on net sales of 130.6 billion rupees ($1.94 billion). That compares to income of 10.9 billion rupees ($164.7 million) on sales of 117.1 billion rupees ($1.77 billion) for fiscal 2016, or a 1% decrease in net income year-over-year. Net sales increased 11% versus the year-ago period.

Apollo’s results overall were impacted by higher raw material prices and in India by Chinese imports, according to Chairman Onkar Kanwar.

“All our key operations have done well, despite the challenges in the last fiscal. Raw material prices, which have increased sharply quarter-on-quarter, continue to pose challenges for us, and have impacted our margins. There has been a healthy volume growth in the passenger vehicle segment across geographies in the past fiscal; however, the truck radial segment in India, while it has grown in the 4th quarter, has been impacted by the dumping of low cost tires, especially from China, through the year.”

The company’s consolidated revenues for various geographic areas break down as follows:

* India – 63%;

* Europe – 32%; and

* other geographies – 5%.

Highlights of Apollo’s fiscal year include:

* formal inauguration its Global R&D Centre, Asia in Chennai, India, which also won the NDTV Design & Architecture Award 2016;

* partnership extension with Manchester United;

* Signing of an MoU (memorandum of understanding) with Andhra Pradesh Government for a proposed manufacturing unit in that state;

* introduction of a new range of truck-bus radial products in India;

* introduction of Apollo Altrust, a light truck tire, and expansion of Vredestein Quatrac range, for the European market;

* opening of an office in Malaysia;

* introduction of Apollo SL HD, a specially developed truck bias tire for the market, in Bangladesh;

* introduction of the Apollo Apterra HT2 for the 4x4 and pickup segment was in the Middle East market; and

* launch of the Mangrove Conservation project in the Kannur district of Kerala, in association with Wildlife Trust of India

In addition, on the occasion of International Women’s Day, Apollo Tyres facilatated women achievers in Vadodara, Gujarat, who have not only worked for their own empowerment and livelihood generation, but have also aligned with similar women from their own or nearby villages, and have provided income opportunities to them as well by forming self-help groups supported by Apollo’s program.

For more information about the company, visit www.apollotyres.com.

Related Topics: Apollo financials

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