Kerala, India – Indian tire maker Apollo Tyres Ltd has posted double-digit increases in sales and operating profit for the fiscal year ending March 2019.
Net sales grew 18% year-on-year to Rs172 billion (€2.134 billion) for the year, the company reported 9 May.
Apollo attributed the gains to a “strong performance” in the commercial vehicle segment, especially truck radials in India, and passenger car tires in Europe.
Overall, India contributed to 66% of total revenue while Europe represented 30%. The remainder was attributed to ‘other geographies’.
Operating profit also rose 18%, to Rs20.8 billion, with both Indian and European operations tracking “growth momentum.”
“Considering the headwinds, we have managed a healthy volume growth across geographies for the full year,” said Onkar Kanwar, chairman, Apollo Tyres.
In the fourth quarter, however, the bottom line was impacted by a 10% increase in raw materials prices and write-offs for Indian infrastructure and finance company ILFS, Kanwar noted.
With “green shoots already visible in the replacement market,” Kanwar said he was optimistic that sales would pick up in India after national elections, which are currently underway.
“European operations… will continue with its strong performance on the back of increased supplies from Hungary,” Apollo’s chairman concluded.