Gradual margin recovery to keep Apollo Tyres on tough terrain
1 month, 3 weeks ago

Gradual margin recovery to keep Apollo Tyres on tough terrain

Live Mint  

Apollo Tyres Ltd is grappling with acute margin pressure amid weak demand. Earlier price hikes in truck and bus radial and passenger car radial segments and an improving product mix could aid margin recovery. Note that the earnings of tyre companies are more sensitive to margin movement as they do not usually pass on the full impact of the increase/decrease in raw material costs in the replacement market. “We have cut our FY25-27 consolidated earnings per share estimates by 3-4% due to lower revenue growth and Ebitda margin assumptions," said a Kotak Institutional Equities report on 8 February. Margin call While margins are expected to recover from Q4 due to correction in domestic and international rubber prices and normalization of inventory costs, Apollo’s margin performance could remain below Street expectations, as it will focus on recovering the lost market share in the replacement segment, Kotak cautioned.

India Europe Margin Raw Material Cost  recovery  tough  replacement  inventory  gradual  tyres  raw  q4  market  demand  q3  share  apollo  margin  material  terrain

History of this topic

Apollo Tyres has to cover a lot of ground to reverse under-performance
4 months, 2 weeks ago

Apollo Tyres has to cover a lot of ground to reverse under-performance

Live Mint  

Apollo Tyres Ltd.'s ride in CY24 so far has been tough. The management said raw material basket cost increased by 8% sequentially in Q2FY25 and is expected to rise by another 1% in Q3FY25. To mitigate cost pressures, Apollo Tyres took a 2%/3% price increase in the truck and bus radial/passenger car radial segment during Q2FY25. For the ninth consecutive …

Apollo Tyres stock gains 7% amid block deal, hits new all-time high
1 year, 3 months ago

Apollo Tyres stock gains 7% amid block deal, hits new all-time high

Live Mint  

Shares of Apollo Tyres rallied 7% in early trade on Tuesday to hit a new all-time high of ₹485 apiece. This uptick in shares came after 2.61 crore shares of the company changed hands in a block deal window on Tuesday. Earlier, it was reported that foreign portfolio investor Warburg Pincus would sell a 3% stake in the tyre manufacturer …

Apollo Tyres vs CEAT: Which tyre maker should you pick after stellar Q4 earnings?
1 year, 10 months ago

Apollo Tyres vs CEAT: Which tyre maker should you pick after stellar Q4 earnings?

Live Mint  

Falling raw material costs and improved demand have led major tyre companies to deliver solid numbers for the March quarter. Lower RM costs boost operating profits CEAT reported a drop in raw material costs in Q4FY23 to Rs 1,721.9 crore from Rs 1,785.2 crore in Q3FY22. The company's operating profit in Q4 has grown by Rs 92.4% YoY to Rs …

Tyre firms to gain when replacement demand, lower input costs kick in
6 years, 4 months ago

Tyre firms to gain when replacement demand, lower input costs kick in

Live Mint  

The road ahead appears to promise a smoother ride for tyre companies, after having steered through rough terrain for some time. Note that rubber and crude oil prices, which comprise nearly three-fourths of the cost of making a tyre, have retraced by 13% and 36%, respectively, over the last 45-60 days. Since FY16, tyre stocks have lost ground despite growth …

Apollo Tyres, Ceat, MRF betting big on rising local demand
6 years, 7 months ago

Apollo Tyres, Ceat, MRF betting big on rising local demand

Live Mint  

Tyre firms are on a roll. Last week, Apollo Tyres Ltd surprised investors as it announced a ₹ 6,500 crore capex spread over the next three years. The June quarter results saw impressive revenue and profit growth—Ceat net revenue rose by about 17% year-on-year, while that of Apollo Tyres jumped 31%. June quarter Ebitda margins of Apollo Tyres and Ceat …

Apollo Tyres's Q1 net surges nearly three-fold to Rs 252 crore on robust sales in India and Europe
6 years, 8 months ago

Apollo Tyres's Q1 net surges nearly three-fold to Rs 252 crore on robust sales in India and Europe

Firstpost  

Net sales stood at Rs 4,249.39 crore during the April-June period as compared with Rs 3,512.98 crore in the same period of 2017-18, Apollo Tyres said New Delhi: Apollo Tyres on Wednesday posted a nearly three-fold rise in consolidated net profit at Rs 251.84 crore for the June quarter, driven by robust sales across various markets including India and Europe. …

Apollo Tyres Q1 profit surges nearly 3-fold to ₹252 crore
6 years, 8 months ago

Apollo Tyres Q1 profit surges nearly 3-fold to ₹252 crore

Live Mint  

New Delhi: Apollo Tyres on Wednesday posted nearly three-fold rise in consolidated net profit at ₹ 251.84 crore for the June quarter, driven by robust sales across various markets including India and Europe. Net sales stood at ₹ 4,249.39 crore during the April-June period as compared with ₹ 3,512.98 crore in the same period of 2017-18, Apollo Tyres said in …

Apollo Tyres debt from Cooper deal may not rise sharply on rupee fall
11 years, 7 months ago

Apollo Tyres debt from Cooper deal may not rise sharply on rupee fall

Live Mint  

Mumbai: The debt burden that Apollo Tyres Ltd will have to bear to pay for its $2.5 billion buyout of US-based Cooper Tire and Rubber Co. will not rise significantly though the rupee has fallen almost 12% since the deal was announced in June, as most of the debt is reflected in the balance sheet of Cooper. add_main_imageOf the $2.5 …

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