Apollo Tyres Net Profit Declines By 7% To Rs 78 Crore

The Board of Directors of Apollo Tyres Ltd has approved the company’s audited financial results for the 4th quarter (January to March) and the financial year 2019-20.

Consolidated revenues, across operations, for the full year of FY20 closed at Rs 16096 crores. During the same period the company reported a net profit of Rs 476 crores. Net sales for the fourth quarter closed at Rs 3551 crores; net profit reported for the last quarter of FY20 was Rs 78 crores.

Consolidated Annual Performance Highlights: FY2019-20 (April-March) vs FY2018-19
·        Net sales closed at Rs 16096 crores, as compared to Rs 17273 crores in the previous fiscal
·        Operating profit reported was Rs 1962 crores
·        Net profit stood at Rs 476 crores for the fiscal

Indian Operations continued with its growth in the replacement market for the full year in most of the product categories, led by a strong performance in the passenger vehicle segment, Industrial tyres and light commercial vehicle segment. The OE segment, though improved sequentially in the fourth quarter, remained under pressure for the full year. European Operations as well saw growth in some of the product segments for the full year.

Quarter 4 Consolidated Performance Highlights: Q4 FY2019-20 (January-March) vs. Q4 FY2018-19
·        Net sales closed at Rs 3551 crores, as compared to Rs 4176 crores in the previous fiscal
·        Operating profit reported was Rs 473 crores
·        Net profit for the quarter closed at Rs 78 crores

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “Along with the demand in the replacement market, we saw some improvement in demand from OEs as well in the fourth quarter, before the widespread disruption caused by COVID-19 put us all in an uncharted territory. Our teams across geographies have shown great resilience and adaptability in this difficult situation; various actions have been taken at our Operations around the world to protect our people and to ensure Business Continuity under these circumstances. With lockdowns easing, the demand has started picking up gradually across product and market segments, giving us some relief.”