Apollo Tyres carried forward its strong performance of first quarter even to the second quarter ending September 2012. With an18% increase in consolidated total income from operations at Rs 3,374.83 crore during the quarter, the company managed to almost double its profit to Rs 152.3 crore. Healthy growth in the PBIT profits in both Indian and European business coupled with lower raw material cost has powered the profitability during the second quarter. With robust performance in both the quarters, the company managed to put up a strong first half show.
Consolidated Quarterly Performance
For the quarter ended September 12, the company has reported 18% increase in the total income from operations at Rs 3,374.83 crore mainly on the back of increase in the revenues from Indian and South African operations.
With decline in the rubber prices, the company has witnessed decline in the raw material cost. The raw material cost as % of sales net of stock adjustments has declined 290 bps to 59%. The employee cost declined 80 bps to 10.9%. Resultantly, Operating margins improved 260 bps to 10.9% leading to a 53% rise in operating profit to Rs 366.96 crore.
With more than doubling of other income to Rs 14 crore, PBIDT increased by 55% to Rs 380.9 crore. Interest and depreciation cost increased by moderate 20% and 17% respectively. Thus, profit before tax more than doubled to Rs 206.8 crore. Even after considering 460 bps increase in the effective tax rate at 25.85% and Rs 1.06 crore of loss from associates, Net Profit was higher by robust 96% to Rs 152.27 crore.
During the quarter, the company earned 67%, 11% and 23% of its revenues from India, South Africa and Europe respectively. The figures were 64%, 10% and 26% in the corresponding previous quarter. Revenues from India and SA increased by 24% and 30% to Rs 2,282 crore and Rs 391 crore respectively. Europe registered a meagre 6% growth in revenues.
But in terms of profitability, it was India and Europe operations that contributed. At the segment front, Indian business has reported 109% jump in the PBIT at Rs 179.3 crore and constituted 62% of the total segment profit. Further, segment profit of European operations jumped 43% to Rs 113.2 crore on a small growth in topline. South African business was back in the red and reported loss of Rs 4.1 crore against profit of Rs 2.6 crore in the corresponding previous quarter.
Half Yearly Performance:
For the half year ended September 12, the company has posted 87% rise in the consolidated Net Profit at Rs 290.37 crore over 15% increase in the total income from operations at Rs 6,539.5 crore. The raw material cost as % of sales net of stock adjustments declined 320 bps to 59.8% during first half. OPM shot up by 270 bps to 11% resulting in a 52% growth in operating profit to Rs 718.62 crore.
With good help from a modest rise in other income, and controlled rise in interest and depreciation charges, PBT rose by 96% to Rs 399.71 crore. Even after considering 310 bps increase in the effective tax rate at 26.9% and Rs 1.95 crore of loss from associates, Net Profit was higher by robust 87% to Rs 290.37 crore.
During the first half, the company earned 68%, 12% and 22% of its revenues from India, South Africa and Europe respectively. The figures were 67%, 10% and 24% in the corresponding previous half. Revenues from India and SA increased by 16% and 35% to Rs 4,435 crore and Rs 784 crore respectively. Europe registered 7% growth in revenues.
- The promoters' share in the total shareholding dropped to 43.37% in September 2012 quarter as against 45.1%.
- The scrip closed at Rs 86.45 on BSE on 2 November 2012, down by 2.4% after trading as high as Rs 90.5 earlier during the day.