Shares of Apollo Tyres ended a four-day losing streak with a nearly 5 percent rise on November 14, following a quarterly report that aligned with market expectations.
By 12:10 PM, Apollo Tyres' shares had climbed 4 percent to Rs 475. The stock has posted only a 5 percent increase for the year so far, underperforming the Nifty 50 index, which rose by 8 percent over the same period.
Apollo Tyres' Q2FY25 results showed a mixed picture. The company reported a slight drop in consolidated net profit, down 1.5 percent quarter-on-quarter and 37 percent year-on-year, totalling Rs 297.5 crore. Revenue from operations increased modestly by 1.6 percent sequentially and 2.5 percent annually, reaching Rs 6,437 crore.
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The company's EBITDA fell by over 24 percent on year to Rs 877.9 crore in Q2FY25 and EBITDA margin contracted by 483 basis points to 13.6 percent.
The company's India operations saw single-digit growth in replacement segment volumes, boosted by double-digit gains in the truck, bus, and farm sectors. OEM volumes were softer due to an unfavourable commercial vehicle mix, and raw material costs surged by 15 percent, which placed pressure on EBITDA margins.
In Europe, Apollo Tyres gained market share in the ultra-high performance segment (UHP), which grew to 46 percent of total sales from 39 percent in the previous year. EBITDA margins improved by 74 basis points despite slightly higher raw material costs, and the company said that it continues to focus on premiumisation in the European market.
Apollo Tyres' debt position saw a slight shift, with net debt rising by Rs 460 crore from March to September due to an increase in short-term borrowings tied to higher working capital needs. However, the company reduced its long-term debt by Rs 760 crore over the same period.
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