Apollo Tyres says its consolidated annual revenues for the fiscal year ended 31 March, 2015, across operations were INR127bn (US$1.97bn).

During the same period the company reported a net profit of INR9.8bn. Net sales of the company for the fourth quarter closed at INR31bn; net profit for fourth quarter grew 9% to reach INR3.1bn. Operating profit reached INR19.8bn from INR19.7bn.

“Despite a healthy volume growth in the passenger car tyre segment in Europe, and nearly 30% volume growth in the truck-bus radial segment in India, our topline has not grown, primarily due to the South African operations, and also because of the depreciation of Euro,” said Apollo Tyres chairman, Onkar Kanwar.

“Having said that, our effort towards faster market expansion outside India, has resulted in a strong growth of more than 20% in exports out of India.”

Fourth quarter consolidated performance highlights. Fourth quarter fiscal year 2014-15 (January-March) versus fourth quarter financial year 2013-14.

  • Net sales closed at INR31bn
  • Operating profit grew 7% to INR5.1bn from INR4.8bn
  • Net profit grew 9% to INR3.1bn from INR2.8bn in the same quarter the previous year

“The recent increase in import duty of natural rubber from 20% to 25% in India, will be a challenge going forward,” added Kanwar.

“This change in duty is likely to result in further increase in import of cheap tyres into the country, which can be imported at 10% duty and will hinder the growth of capacity investments by the domestic tyre industry, in addition to making us uncompetitive.”