Dolat Capital: Apollo Tyres’ Rising Interest Cost Dents Q1 Profit

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..Dolat Capital Report.Apollo Tyres Ltd.’s Q1 FY21 numbers beat our estimates. Operating margin was 8.3% (down 270 basis points QoQ), beating our estimates due to favorable raw material prices, improvement in product mix (high proportion of replacement volume) and cost control measures.However, profit after tax was suppressed by high interest costs. Revenue de-grew by 34% YoY to Rs 28.2 billion, led by 42% fall in Asia Pacific, Middle East and Africa sales, 12% in Europe and 60% YoY in other regions.Management stated that the recovery in the replacement market looks promising, recording a growth of 10% YoY in the month of July led by strong uptick in farm segment and truck-bus radial tyres.Passenger car radial and two-Wheelers tyre demand are also picking up gradually. Current inventory stands at seven days due to production constraints..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.

Dolat Capital: Apollo Tyres’ Rising Interest Cost Dents Q1 Profit

Dolat Capital: Apollo Tyres’ Rising Interest Cost Dents Q1 Profit

Choose a plan