Apollo Tyres eyeing for double-digit revenue growth in FY24

15 May 2023 , 08:03 AM

According to Satish Sharma, president of Apollo Tyres Ltd for the Asia Pacific, Middle East, and Africa region, who talked to ET, the business anticipates organic volume growth to drive double-digit revenue growth in FY24. According to him, the Indian tyre sector is in a good situation with rising demand and moderating raw material prices. However, lowering tyre prices will rely on the level of competition.

‘We are still experiencing double-digit growth in the same general area. It’s totally possible, Sharma stated during a conversation with ET. He was responding to a question on the anticipated revenue growth for FY24.

Apollo Tyres recorded a consolidated revenue from operations of Rs24,568 crore in 2022–23 as opposed to Rs20,948 crore the previous year.

He stated that FY24 will be a year of pure performance for everyone in the tyre sector based on volume growth and the economy’s organic growth.

According to an OEM’s perspective, the commercial vehicle segment is in an upcycle that is ‘likely to be a longish cycle,’ while the passenger car segment is expected to outperform its track record of low single-digit growth and shift to a high single-digit, he added.

Sharma responded when asked if there was a chance that tyre prices could drop as the cost of raw materials decreased: ‘Given the uncertainties in the environment and given that inflation is still not moderated, the scenario of price reductions to my mind looks remote but ultimately, they’re always governed by competitive intensity.

He declared that Apollo Tyres would keep emphasizing the premium positioning of its goods across categories through ‘technology-driven’ innovation.

For feedback and suggestions, write to us at [e-mail]