Apollo margins hit by ‘unprecedented rise in costs'

Chennai, India – Apollo Tyres has seen its margins hit by the rising cost of raw materials for the financial year ended 31 March, the company announced 12 May.

Full year operating profit fell 8% to INR 25 billion (€307 million), on 20% higher sales of INR 209 billion. Net profit increased 82% to close at INR6.4 billion, as against INR 3.5 billion last year.

Fourth quarter operating profit was down 23% at INR 6.3 billion, while sales were up 11% at INR 55.7 billion.

“The unprecedented rise in input costs in fiscal year 22 has taken a toll on our margins, despite our internal cost control measures, and multiple rounds of price corrections,” said chairman Onkar Kanwar.

Kanwar linked the fourth quarter sales growth to the “robust demand” in Europe and healthy growth in exports out of India.

“The silver lining for us, is the recent uptick in demand in India, especially in the CV segment,” he added.