Net sales of India-based Apollo Tyres amounted to EUR 1.77 billion in its 2016-17 financial year ending in March, up 11% on the preceding year. Operating profit closed at EUR 271.8 million and net profit at EUR 149.3 mln, a press release sent to the Budapest Business Journal reveals. The recently opened Hungarian plant is seen boosting global performance further.
The Board of Directors of Apollo Tyres approved the company’s audited financial results for the financial year 2016-17 and recommended a dividend payout of 300%, to be approved by shareholders at the Annual General Meeting later in the year.
“All our key operations have done well, despite the challenges in the last fiscal. Raw material prices, which have increased sharply quarter-on-quarter, continue to pose challenges for us, and have impacted our margins,” said Onkar S. Kanwar, Chairman of Apollo Tyres.
Kanwar noted that the passenger vehicle segment has seen “healthy volume growth” across geographies; however, the truck radial segment in India, while has grown in the last quarter, has been impacted by the dumping of low-cost tires, especially from China, through the year.
“With tyres rolling out from our Hungarian greenfield, and also from the expanded truck/bus radial facility in Chennai, we are looking forward to good volume growth in the current fiscal, in addition to a gradual increase in our market share in Europe over the next few years,” Kanwar emphasized.
Apollo Tyres expects its recently opened Hungarian plant in Gyöngyöshalász, northern Hungary, to play a “strategic role” in the European market, as the factory will be responsible for supplying not just the passenger tire segment, but the truck/bus radial (TBR) market as well, according to a BBJ report last week.