Shares of Apollo Tyres Limited tumbled over 5 percent to Rs 413 at 10:50am on August 11, despite recording a robust set of numbers for the April-june quarter.
The tyre major reported a two-fold rise in consolidated net profit for the first quarter to Rs 397 crore, driven by robust sales across multiple markets.
Both Apollo and CEAT yielded negative returns last month, but MRF stayed in the green with 4 percent gain.
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During the quarter under review, Apollo Tyre's total revenue increased 5.1 percent to Rs 6,244.5 crore from Rs 5,942 crore last year. On the operational aspect, EBITDA increased by 52.4 percent to Rs 1,051.3 crore from Rs 689.8 crore.
The EBITDA margin for the reporting quarter stood at 16.8 percent, an increase from the 11.6 percent recorded in the corresponding period last year.
The company attributes the surge to its European operations outperforming the market under a tough scenario, while in India, the focus remained on higher margin products and markets.
“My compliments to the team in Europe for outperforming the market, despite the ongoing challenges. In India we have done well in the key replacement market segment, while focusing on enriching our product and market mix for better profitability, from a long term perspective. This, along with stable input costs have resulted in better margins in the past quarter,” Onkar Kanwar, Chairman, Apollo Tyres Ltd, said.
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