New Delhi: India’s largest passenger car tyre exporter Apollo Tyres on Tuesday reported a 62% jump in net profit to Rs42.71 crore for the fourth quarter ended 31 March, as compared with Rs26.38 crore for the corresponding period a year ago.
The company, which acquired the South African arm of Dunlop Tyres, also became the first Indian tyre company to cross the $1 billion (Rs4,100 crore) mark in annual revenues with net sales at Rs430 crore, post-consolidation of the financials of the acquired company, a statement.
On consolidated basis (Indian and South African operations), the company managed to achieve an operating profit of Rs400 crore, up 74% from Rs230 crore in 2005-06 amid high raw material costs and escalating natural rubber prices, it said. “Once again, we have achieved huge revenue growth of more than 16% in South Africa and 25% in India, coupled with significant improvement in profitability,” Apollo Tyres chairman and managing director Onkar S. Kanwar said.
The firm achieved operational efficiencies as its operating profit improved by more than 80% to Rs100 crore as against Rs56.71 crore in the fourth quarter, it said.
Also, Apollo Tyres’ share in the country’s tyre exports increased to 19% against 12% in 2005-06. It also clocked 15% growth in the 12-month period ended 31 March over the passenger car radial industry growth pegged at just 7%. The stand-alone income of the tyre maker stood at Rs912.79 crore for the January-March quarter in this fiscal, up 22.4% as against Rs746.17 crore for the same period a year ago, the company informed BSE.