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Last Updated : Feb 06, 2019 12:09 PM IST | Source: Moneycontrol.com

Apollo Tyres Q3 review: India biz under strain, even as Europe gains offset profit dip

The company reported a 19.18 per cent decline in net profit to Rs 198 crore in the third quarter ended December 2018, owing to a rise in commodity prices.

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Analysts have termed Apollo Tyres’ earnings in India to be a miss on estimates, but Europe market gains have offset India business.

The company reported a 19.18 per cent decline in net profit to Rs 198 crore in the third quarter ended December 2018, owing to a rise in commodity prices.

The company had posted a net profit of Rs 245 crore in the corresponding period last fiscal, Apollo Tyres said in a statement.

Sales were up 16 per cent to Rs 4,655 crore, against Rs 4,016 crore in the corresponding quarter last fiscal, it added.

Total expenses during the third quarter were higher at Rs 4,440.59 crore, against Rs 3,746.11 crore with cost of materials consumed rising to Rs 2,252.4 crore as compared to Rs 1,818.23 crore in the year-ago quarter.

Here is a gist of what brokerages said about the results.

Brokerage: Credit Suisse | Rating: Neutral | Target: Cut to Rs 210 from Rs 240

The brokerage has cut FY19-21 EPS estimate By 5%. Its earnings miss in India was compensated by Europe, it added.

Brokerage: Citi | Rating: Buy | Target: Cut t Rs 285 from Rs 305

Citi said that Q3 result was ahead of estimates; outlook is mixed. It added that India business was seeing competitive pressures amidst declining OEM demand. EBITDA estimates are cut by 3-5% as margin is trimmed by 20-30 bps.

At 11:50 hrs Apollo Tyres was quoting at Rs 195.45, down Rs 7.05, or 3.48 percent, on the BSE.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Feb 6, 2019 12:09 pm
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