GUARGON, India — Apollo Tyres Ltd. suffered a slight drop in operating income for the fiscal year ended March 31 despite 20% higher sales.
Fiscal 2022 operating profit declined 8% to $340 million on 20.4% higher sales of $2.76 billion, yielding an operating ratio of 12.3%, down nearly four points from fiscal 2021. Net profit increased 82.6% to $84.3 million.
Apollo Tyres Chairman Onkar Kanwar cited the "unprecedented rise in input costs" throughout the year for the cutting into the firm's margins. The decline came despite the firm's internal cost control measures and multiple rounds of price increases taken in different product categories, he added.
Robust demand in Europe, especially in the fourth quarter, and healthy growth in exports contributed to increased revenues, Kanwar said. Apollo also experienced rising demand in India for commercial vehicle tires.
From a regional standpoint, Apollo reported revenue in Europe increased 15.5% to $864.7 million and 61% in its "others" region — which includes North America — to $540.5 million. Business in the Asia/Pacific/Middle East region — which includes India — was up 24.4%.