Apollo Tyres expects a 10% growth in its business revenue in India for the fiscal year 2023-24, driven by strong demand in the domestic market. In the previous fiscal year, the company reported a 73% increase in net profit and a 17.3% rise in revenue.
Apollo Tyres aims to achieve revenues of US$ 5 billion by the fiscal year 2025-26 and is focused on factors like the growth of the passenger vehicle segment, premiumisation trends, and market share gains in premium categories.
The company plans to maintain disciplined pricing strategies and pass on commodity inflation to the replacement market to improve margins. While the premium car segment is relatively small, Apollo Tyres aims to gain market share with its Vredestein brand.
The company has a significant market share in the domestic PCR segment and is strategizing to enhance return on capital employed and keep net debt below two times its EBITDA.
Apollo Tyres is adopting a capex light model, focusing on maintenance, digitalization, and sustainability-related investments, and is running its manufacturing plants at around 80% capacity utilization in India.
