BQ Blue’s special research section brings together in-depth and quality research reports on the stocks and economy of the largest Indian brokerage firms. These reports provide BloombergQuint subscribers with the opportunity to deepen their understanding of businesses, industries and the economy.
Apollo Tires Ltd. reported relatively healthy operating performance in the first quarter of FY21 given the circumstances.
Consolidated net sales fell 33.7% year-on-year (in volume) to Rs 2,873 crore (Asia-Pacific, Middle East & Africa i.e. mainly India revenue down 42 , 1%, revenues in Europe down 12%). Ebitda margins at 8.3% fell 490 basis points in QoQ.
The deterioration in QoT margin was largely due to a 407 basis point drop in gross margins although other expenses were contained, down 119 basis points in QoQ as a percentage of revenue.
APMEA’s EBIT margins fell 130 basis points in QoQ to 2% as losses in Europe increased. The consecutive after-tax consolidated loss amounted to Rs 135 crore, accelerated by the rise in interest charges (up about 101% year-on-year and about 29% quarter-on-quarter).
The company has received the first tranche of investment in mandatory convertible preferred shares by Emerald Sage in the amount of approximately Rs 540 crore, with the second tranche of a similar amount to be received by October 2020.
Click on the attachment to read the full report:
This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is not responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert according to your individual needs. The opinions expressed in the report are those of the brokerage firm and do not represent the views of BloombergQuint.
Users have no license to copy, modify or distribute the content without the permission of the original owner.