ICICI Direct: Apollo Tyres Q1 Review - Double Digit Return Ratios Still Some Distance Away

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Apollo Tyres Ltd. reported a relatively healthy operational performance in Q1 FY21 given the circumstances.Consolidated net sales were down 33.7% YoY (volume-led) at Rs 2,873 crore (Asia Pacific, Middle East and Africa i.e. largely India revenues down 42.1%, Europe revenues down 12%). Ebitda margins at 8.3% were down 490 basis points QoQ.QoQ margin deterioration was largely due to 407 basis points fall in gross margins although other expenses were controlled, falling 119 basis points QoQ on percentage of sales basis.APMEA Ebit margins dipped 130 basis points QoQ to 2% while losses in Europe expanded. Consequent consolidated loss after tax came in at Rs 135 crore, accelerated by jump in interest costs (up approximately 101% YoY and approximately 29% QoQ).The company received first tranche of compulsorily convertible preference shares investment by Emerald Sage amounting to approximately Rs 540 crore, with the second tranche of similar amount set to be received by October 2020..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Apollo Tyres Q1 Review - Double Digit Return Ratios Still Some Distance Away

ICICI Direct: Apollo Tyres Q1 Review - Double Digit Return Ratios Still Some Distance Away

Choose a plan