The Hindu Business Line : Apollo Tyres net up 15.5 pc for full year

The Rs 3,000-crore Apollo Tyres Ltd (ATL) on Friday reported a net profit of Rs 78.17 crore for the year ended March 31, 2006, which represented a 15.58 per cent increase over the net profit of Rs 67.63 crore recorded in the previous financial year.

Net sales for the period under review increased by 17.97 per cent to Rs 2,625.52 crore (Rs 2,225.49 crore). The board of directors has declared a dividend of 45 per cent amounting to Rs 17.25 crore for the financial year 2005-06.Operating profit of ATL for the financial year ended March 31, 2006 stood at Rs 223.92 crore (Rs 184.64 crore).

Fourth quarter

For the fourth quarter ended March 31, 2006, ATL has reported a net profit of Rs 26.4 crore (Rs 20.3 crore) on net sales of Rs 745.85 crore (Rs 635.11 crore).

Commenting on the financial performance, Mr Onkar S. Kanwar, Chairman and Managing Director, ATL, said in a statement that this (2005-06) is the third consecutive year of high raw material costs, with an increase of over 15 per cent compared to the previous year.

"However, our product price increases has not been in line with this. To balance the cost-push on this front, we have taken steps within the company to increase the efficiencies across functions.

"We will have to continue to do this, since the challenge of high raw material prices will be with the industry this year also," Mr Kanwar said.

Steep targets

He also said that the company has set steep targets for the coming years which would allow Apollo Tyres to attain global scale of operation, while continuing to play a leading role in the Indian tyre industry.

The ATL statement said that it has retained the net profit margin at 3 per cent despite an exponential rise in the prices of natural rubber and crude oil over the period of the year.