KERALA, India (June 2, 2010) — Apollo Tyres Ltd. reported a nearly five-fold jump in net income for the year ended March 31 on 62.9-percent higher sales, including nearly a full year of results for the former Vredestein Banden, acquired in May 2009.
Apollo's net income shot up to $136.9 million on sales of $1.7 billion. Pre-tax operating earnings more than tripled to $192.9 million.
The firm's growth and profitability across operations is a “clear indication of the company's ability to overcome a challenging environment and consistently work towards delivering value through profitable growth,” said Apollo Chairman Onkar Kanwar.
For fiscal 2011, however, Kanwar warned shareholders that the “unsubstantiated rise” in natural rubber prices and currency volatility will be a “dampener and a huge challenge.” He said NR prices have risen more than 150 percent in just 14 months.
In addition to international growth—overseas sales now account for 38 percent of the firm's consolidated annual sales—Apollo's domestic operations turned in their best performance ever, topping $1 billion in sales.
Internationally, Apollo Tyres South Africa (Pty.) Ltd. registered 13-percent revenue growth on 18-percent higher sales volume, and Apollo Vredestein Banden B.V. in the Netherlands boosted winter tire sales by 23 percent.