Revenue missed forecast, down 12 percent to Rs 2,845.3 crore in June quarter compared to Rs 3,235.5 crore in the year-ago period due to lower demand in domestic and export markets. Sales also impacted by heavy dumping of Chinese tyres into India.
Apollo Tyres' first quarter profit beat analysts' expectations, rising 27.5 percent year-on-year to Rs 290.6 crore led by strong operational performance and lower finance cost.
However, revenue missed forecast, down 12 percent to Rs 2,845.3 crore in June quarter compared to Rs 3,235.5 crore in the year-ago period due to lower demand in domestic and export markets. Sales were also impacted by heavy dumping of Chinese tyres into India.
According to a CNBC-TV18 poll, profit was estimated at Rs 281 crore on revenue of Rs 3,112 crore for the quarter.
Indian business dropped 7.4 percent to Rs 2,155 crore with EBIT (earnings before interest and tax) showing 45.2 percent growth year-on-year. Europe business (run by subsidiary Vredestein) declined 12 percent to Rs 770.7 crore with EBIT falling 18.3 percent.
Operating profit jumped 17.2 percent year-on-year to Rs 503 crore and margin expanded by 450 basis points to 17.7 percent in the quarter ended June on lower raw material cost, employee expenses and depreciation cost. Analysts had estimated operating profit at Rs 494.5 crore and margin at 15.9 percent for the quarter.
Raw material cost in Q1 dropped 27.85 percent to Rs 1,273.3 crore year-on-year on fall in crude oil prices. During the same period, employee expenses fell 15.3 percent to Rs 359 crore and depreciation & amortisation expenses slipped 11.7 percent to Rs 88.6 crore.
Finance cost declined 54 percent to Rs 24.3 crore while tax expenses jumped 62.9 percent to Rs 124.45 crore compared to corresponding quarter of last fiscal.
At 14:10 hours IST, the scrip of Apollo Tyres was quoting at Rs 188, down Rs 21.00, or 10.05 percent on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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