Apollo Tyres (APOLLOTYRE) Q4 99/00 earnings summary

Executive summary

• FY ended Mar 31, 2000 sales and other income rose 18.9% to Rs.1,370.23 crore; net profit reached Rs.76.06 crore, up 144.7% YoY.

• Output increased despite lock-outs at Kochi and Vadodara and at Premier Tyres’ Kalamassery plant.

Financial highlights

• Sales were Rs.1,348.75 crore vs Rs.1,151.16 crore; other income was Rs.21.48 crore vs Rs.0.90 crore.

• Profit before depreciation and tax was Rs.120.66 crore vs Rs.75.32 crore; PBT was Rs.94.06 crore vs Rs.51.86 crore.

• PAT was Rs.76.06 crore vs Rs.40.02 crore; prior-period expenses were nil vs Rs.8.94 crore, resulting in net profit of Rs.76.06 crore vs Rs.31.08 crore.

• Interest expense fell to Rs.41.34 crore from Rs.58.97 crore; profit improvement also reflected inventory and credit management, cost controls and higher other income.

• Equity capital rose to Rs.36.32 crore from Rs.33.06 crore following warrant conversions; free reserves were Rs.360.68 crore.

Outlook and guidance

• A new 100-tonne/day cross-ply and radial tyre facility was planned, with Rs.450 crore estimated capital outlay and focus on truck and bus radials.

• Target set for 2005: gross profit of Rs.500 crore and turnover of Rs.5,000 crore, at 1999 prices.

• Passenger radial capacity of 2,000 tyres/day at Vadodara and a 50,000-tyre two-/three-wheeler conversion unit were implemented.