Apollo Tyres' FY24 net profit up 65%; Q4 profit down 14% YoY

Apollo Tyres Ltd today reported a 65 percent on-year growth in its net profit for the financial year 2024 on the back of robust operating performance. However, net profit during the quarter fell around 13.7 percent on a year-on-year basis.

The tye maker’s consolidated profit for the full financial year came in at Rs 1,722 crore, against Rs 1,046 crore in the financial year 2023. Revenue from operations during the year rose around 3 percent on year to Rs 25,378 crore.

Net profit rose primarily on operating profit, which grew 34 percent on year to Rs 4,447 crore. Total expenses during the year declined by around 1 percent. Lower expenses helped the company in improving its margins during the year.

Apollo Tyres recorded a one-time loss of Rs 77.3 crore as the company provisioned Rs 31.22 crore on account of the Extended Producer Responsibility (EPR) mandate. This relates to the government’s mandate for producers of waste tyres to meet waste recycling targets by purchasing EPR Certificates from registered recyclers.

The company also recorded a Rs 46.09 crore loss as an exceptional item on account of the amount paid in an employee re-organisation exercise. However, the Rs 112.48 crore increase in other income during the quarter helped the company offset the impact of the one-time loss on its net profit.

Meanwhile, for the fourth quarter, consolidated net profit declined to Rs 354 crore from Rs 410 crore in the year-ago quarter with the revenue from operations remaining almost flat at Rs 6,258 crore.

"Both Indian operations and European operations’ revenue grew in single digits for the full year and in the 4th quarter,” the company said.

Operating profit, however, rose around 3 percent on year to Rs 1,028 crore. Margin improved on a slight reduction in total expenses during the quarter. The company recorded a one-time loss of Rs 36.8 crore in the quarter, compared to a one-time gain of Rs 22.6 crore in the year-ago quarter.

“As per the government's mandate, we have provisioned for the Extended Producer Responsibility (EPR), which has slightly impacted our profitability,” Chairman Onkar Kanwar said in a release.

The company’s board also recommended a dividend of Rs 6 per equity share, subject to the approval of the shareholders at the forthcoming AGM.