Apollo Tyres’ net profit increases 11% in the first quarter of FY 2016-17

Net sales up 16% on a consolidated basis
The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the 1^st quarter of the financial year 2016-17. Earlier in the day, at the 43^rd Annual General Meeting, shareholders approved the annual dividend payout of 200% per share (Rs 2.00 per equity share), for the year ended March 31, 2016.

For the quarter ended June 30, 2016, Apollo Tyres Ltd, on a consolidated level, reported a profit of Rs 315 crores on the net sales of Rs 3285 crores. While Indian Operations’ clocked a revenue growth of 6% in the first quarter of the current fiscal, as compared to the same period last fiscal, European Operations’ revenue grew 10%. Some of the new products introduced in the Indian market, including the newly launched two-wheeler tyres, have seen good demand, especially in the replacement market. Similarly, the European Operations reported increased sales of passenger vehicle tyres.

Quarter 1 Consolidated Performance Highlights 

Q1 FY2016-17 (April – June) vs Q1 FY2015-16

• Net sales increased 16%to Rs 32.85 billion (Rs 3285 crore) from Rs 28.32 billion (Rs 2832 crore)
• Operating profit was at Rs 5.66 billion (Rs 566 crore) an increase of 8%, from Rs 5.23 billion (Rs 523 crore)
• Net profit grew 11% to Rs 3.15 billion (Rs 315 crore) from Rs 2.84 billion (Rs 284 crore)

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “Despite the challenges posed by the Chinese imports, we have seen increased demand for our products from both OEs and the replacement market across product categories in India. Our newly-launched two-wheeler tyres have also been very well accepted by the customers. With the increased truck-bus radial capacity kicking-in the next 2-3 months, we are well poised to a higher volume growth in the fiscal. With the SAP issues resolved successfully in the past quarter, the European Operations has also grown in the past quarter.”

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