Apollo Tyres (APOLLOTYRE) Q4 00/01 earnings summary

Executive summary

• FY01 sales from operations rose 7.9% to Rs.1,454.70 crore, but net profit fell to Rs.25.42 crore from Rs.76.06 crore amid higher input costs, interest and weaker realisations.

• Production volume increased 12.17% to 1.29 lakh tonnes; truck and bus tyre leadership and the largest industry distribution network supported domestic performance.

Financial highlights

• Sales and other income reached Rs.1,458.70 crore versus Rs.1,368.75 crore; operating sales were Rs.1,454.70 crore versus Rs.1,348.75 crore.

• Operating profit before interest and depreciation was Rs.113.83 crore versus Rs.162.00 crore; net profit was Rs.25.42 crore versus Rs.76.06 crore.

• Profit before tax was Rs.25.49 crore versus Rs.94.06 crore; tax provision was Rs.0.07 crore versus Rs.18.00 crore.

• Other income declined to Rs.4.00 crore from Rs.20.00 crore, including prior-year investment sale gains; interest expense increased to Rs.57.46 crore from Rs.41.34 crore.

Outlook and guidance

• Normal monsoon, expected higher foodgrain output and freight movement, and road and expressway investment were expected to support tyre demand.

• Plans included commercial launch of farm radial tyres, a modular pilot truck radial plant as demand grows, and Perambra debottlenecking and balancing equipment.

• Management aimed to protect profitability through cheaper raw-material sourcing, cost reduction, and aggressive marketing amid competition and input-cost pressure.