Apollo Tyres Q4 profit zooms two-fold to Rs 282 crore

Written by PTI | New Delhi | Updated: May 15 2014, 21:19pm hrs
Apollo TyresApollo Tyres' consolidated net profit for FY 14 rose to Rs 1,005.05 cr from Rs 613.80 cr in the previous financial year.
Apollo Tyres' consolidated net profit doubled to Rs 281.62 crore in the quarter ended March 31, mainly on account of increased sales.

Profit was Rs 141.05 crore in the corresponding quarter of the previous financial year, Apollo Tyres said in a filing to the BSE.

Consolidated total income rose to Rs 3,229.27 crore from Rs 3,041.99 crore a year earlier, it added.

The board approved setting up a facility in Eastern Europe costing about 500 million euros over four years.

"We are aggressively pursuing organic growth opportunities," Apollo Tyres Chairman Onkar S Kanwar said.

"Considering the increased demand for our tyres in Europe, along with capacity constraints in our existing facility in Enschede, the Netherlands, has made us prioritise our investment into a greenfield facility in the region."

Consolidated net profit for the financial year ended March 31 rose to Rs 1,005.05 crore from Rs 613.80 crore in the previous financial year, crossing the Rs 1,000 crore mark for the first time.

"Last year, we saw the consolidation of our two brands, Apollo and Vredestein, and their entry into newer markets. All this, along with better product and customer mix across geographies, has helped us report incremental revenues," Kanwar said.

The company had exceptional items of Rs 46.78 crore representing expenses related to the proposed acquisition of Cooper Tire and Rubber Company, which was terminated, and profit on sale of Apollo Tyres South Africa to Sumitomo Rubber Industries, according to the filing.

Apollo Tyres said its board recommended a final dividend of Re 0.75 per share, amounting to Rs 37.80 crore on equity shares of Re 1 each for the year.

Shares of Apollo Tyres traded at Rs 176.45 in afternoon trade on the BSE, up 5.37 per cent.