Sales are up, profits are down for Apollo
Apollo Tyres Ltd. posted net income of 4.1 billion rupees on net sales of 121.5 billion rupees for its fiscal year ended March 31, 2012. That compares to income of 4.4 billion rupees on sales of more than 88.6 billion rupees for its previous fiscal year.
Based on the exchange rate from April 1, 2011, to March 31, 2012, Apollo recorded net income of $83 million on net sales of $2.5 billion for its 2011-2012 fiscal year. Its income-to-sales ratio was 3.3%.
Revenue from Indian operations, which accounts for 67.1% of total revenues, grew 49%. European sales (23.4% of total revenues) grew 27% year to year; African operation sales (10.7% of total revenues) grew 10%.
“The conditions in our largest market, India, have not been easy." says Chairman Onkar S Kanwar. "Same applies for the South African economy. But the positives are many -- primarily expansion of our passenger vehicle range and the launch of three ultra-high performance tires in Europe."
(One UHP tire, the Apollo Aspire 4G, was launched at the 82nd Geneva Motor Show; the other two were launched on the Hungaroring F1 circuit in Budapest.)
"In the critical truck and bus radial segment, we now enjoy a leadership position in India, and are poised for higher growth," says Kanwar. "The stability in the raw material prices, especially in the second half of the fiscal (Oct. 1, 2011, through March 31, 2012) has eased some pressure on our margins.”
After making Dubai its Middle East hub during the fiscal year, the company opened its first branded retail outlet outside the country in Dubai; this Apollo Super Zone sells both passenger and commercial vehicle tires.
In the fourth quarter, Apollo posted net income of more than 1.5 billion rupees (down 18.3%) on net sales of 32.3 billion rupees (up 18.4%).
Kanwar was inducted into the Tire Industry Hall of Fame in 2011 at the Specialty Equipment Market Association Show in Las Vegas, Nev.