Apollo Tyres has had a robust first quarter of FY2019. The company today announced its sales and revenues for Q1 FY2019. For the April to June 2018 period, the company, on a consolidated level, reported a profit of Rs 252 crore on net sales of Rs 4,249 crore. Operating profit grew 102 percent to Rs 569 crore compared to Rs 282 crore a year ago.
Net sales were up 30 percent aided by healthy growth, both in India and Europe, across product segments. While Indian operations' revenue, backed by robust performance of the commercial vehicle and passenger vehicle tyre segments, grew 32 percent to close at Rs 3,021 crore, European Operations’ revenue was up 22 percent at Rs 1,242 crore.
Onkar S Kanwar: Going forward, our growth momentum will continue despite the challenges posed by the raw material cost push, transporters strike and the new loading norms for commercial vehicles in India.”
Onkar S Kanwar, chairman, Apollo Tyres, said, “All our operations have done well in the past quarter, and have reported a good set of numbers. This is a result of planning and investments in capacities, both in India and Europe, in addition to the increasing demand for our products with the OEMs, as well as, in the replacement market. Going forward, our growth momentum will continue despite the challenges posed by the raw material cost push, transporters strike and the new loading norms for commercial vehicles in India.”
Chairman lauds customs duty on low-cost Chinese imports
Speaking at the company’s annual general meeting in Kochi, Onkar S Kanwar lauded the government of India for imposing custom duties on low-cost Chinese imports. “These low-cost imports had been wreaking havoc on manufacturers in India and also on the customers who buy the low-cost products but are not aware about the safety issues as the tyres have not been tested on the Indian roads,” he said.
Commenting on Apollo Tyres’ performance in the past fiscal, “Asia Pacific, Middle East and Africa Operations achieved revenues of over Rs 10,000 crore. The company has a market share of 30 percent in the OE segment in India for small and midsized cars and you will see the company’s tyres OE fitted in eight of the top ten cars being sold in India.”
Highlights of the past year
Some of the highlights of the past year were the inauguration of the Hungary plant and the announcing of a new plant in Andhra Pradesh. Apollo today has six plants worldwide and the seventh will be ready in the next two years.
Kanwar highlighted the fact that its premium Vredestein tyre brand is now getting orders from the OE players in Europe. Vredestein has been selected as a fitment on the VW Polo, Seat Ibiza and Ford EcoSport and the supplies have already begun to these automakers. “Unlike India, where we have deep relationships with almost all leading auto manufacturers, we have largely been a replacement marked focused company in Europe. With the Hungary plant now producing the best-in-class products, we will aggressively seek more business from the European auto manufacturers,” said Kanwar, signing off with “I continue to be bullish on our key markets – the APMEA and Europe regions.”