Apollo Tyres FY24 net profit up 65%

The Board of Directors of Apollo Tyres Ltd has approved the company’s audited financial results for the fourth quarter (Jan to Mar) and the financial year 2023 – 24. The Board recommended a dividend payout of Rs 6.00 per equity share (600%), on face value of Re 1 each for FY24, subject to the approval of the shareholders at the forthcoming Annual General Meeting.

Consolidated revenues from operations across geographies for the full year FY24 grew 3% to close at Rs 25,378 crores, whereas, for the 4th quarter, they were at Rs 6,258 crores. Both Indian Operations and European Operations’ revenue grew in single digits for the full year and in the 4th quarter.

Full Year Consolidated Performance Highlights

FY 2023-24 (April-March) vs FY 2022-23

·       Revenue from operations was up 3% to close at Rs 25,378 crores, as against Rs 24,568 crores in FY23

·       Operating profit was up 34% at Rs 4,447 crores, as against Rs 3,314 crores

·       Net profit was up 65% to close at Rs 1,722 crores, as against Rs 1,046 crores in the same period last fiscal

Quarterly Consolidated Performance Highlights

Q4 FY2023-24 (January-March) vs Q4 FY2022-23

·       Revenue from operations closed at Rs 6,258 crores, as against Rs 6,247 crores in Q4 FY23

·       Operating profit reported was Rs 1,028 crores, as against Rs 998 crores

·       Net profit for Q4 closed at Rs 354 crores, as against Rs 410 crores in the same period last fiscal

Commenting on the company’s performance, Onkar Kanwar, Chairman, Apollo Tyres Ltd said “Our performance in the past fiscal reflects our strategy of profitable growth. Our performance in Europe has been much better than the overall market, with market share gains across product categories. Going forward too, the demand scenario is looking good for different product segments across our key geographies. As per the Govt’s mandate, we have provisioned for the Extended Producer Responsibility (EPR), which has slightly impacted our profitability.”

At its meeting the Board noted the desire of Satish Sharma, President, APMEA (Asia Pacific, Middle East, and Africa) to seek early retirement from the company and accepted his consequent resignation as Wholetime Director from the Board. Onkar Kanwar said “Satish has been expressing his desire to step back from active corporate life and focus on his other interests. I, along with all at Apollo, wish to thank Satish for his 27 years of service and his significant contributions in building Apollo to its present position. We wish him the very best in his future endeavours.”

The Board approved the appointment of Gaurav Kumar, Chief Financial Officer of the company, as the Wholetime Director from June 1, 2024, subject to the approval of shareholders. Welcoming the nomination, Onkar Kanwar commented on Gaurav’s insightful abilities to bring the financial impact of decisions to the forefront and expressed confidence that his presence on the Board would further strengthen the financial lens of the Board on all strategic decisions.

Pallavi Shroff, Independent Director, stepped down from the Board on completion of her maximum two terms of service. In his vote of thanks Onkar Kawar noted her long association with the company and her wise counsel and advice on key matters over the years.

The Board also approved the nominations of Berjis Desai and Sumit Dayal to the Board of Directors with effect from August 6, 2024, subject to Shareholders approval at the forthcoming Annual General Meeting of the company. Mr Desai retired as Senior Partner, J. Sagar Associates, one of India’s leading law firms, after a long and distinguished career spanning 43 years. He currently sits on the Boards of some leading listed companies and is a published author. Mr Dayal brings over 34 years of international banking experience to the Board. His last role was as Global Head of Corporate Finance at Standard Chartered Bank, and he is now a Director in a Sustainable Energy company as also a start-up Fin-Tech company.

Cross currency reference chart for key financials:

 Rs BillionRs CroresUS$ MillionEuro Million
FY 2023-24Q4FY24Q4FY24Q4FY24Q4FY24
Operating Profit10.2844.4710284447123.74537.14113.93495.27
Net Profit3.5417.22354172242.60207.9639.21191.75