Apollo Tyres Q4 Results: Profit Falls 14%, Misses Estimates
The tyre-maker's net profit declined 14% year-on-year to Rs 354 crore in the quarter-ended March 2024.
Apollo Tyres Ltd.'s profit fell in the fourth quarter of fiscal 2024, missing analysts' estimates.
The tyre-maker's net profit declined 14% year-on-year to Rs 354 crore in the quarter-ended March 2024, according to an exchange filing issued on Tuesday. This compares with the Rs 457-crore consensus estimate of analysts polled by Bloomberg.
Apollo Tyres Q4 FY24 Results (Consolidated, YoY)
Revenue up 0.2% to Rs 6,258 crore (Bloomberg estimate: Rs 6,424 crore).
Ebitda rose 3% to Rs 1,028 crore (Bloomberg estimate: Rs 1,133 crore).
Ebitda margin expanded to 16.4% versus 16% (Bloomberg estimate: 17.6%).
Net profit down 14% to Rs 354 crore (Bloomberg estimate: Rs 457 crore).from the
EPR Provision Hits Profit
The company has taken a hit of Rs 31 crore as exceptional item for FY23, and Rs 68 crore as part of other expenses under the EPR Provision, similar to Ceat Ltd. and MRF Ltd.
The Extended Producer Responsibility provision for waste tyres is a recurring expense. Under the said regulation, tyre companies are required to meet specified waste recycling targets from the financial year-ended 2023. These obligations are to be fulfilled by purchasing certificates from recyclers, who are registered with the Central Pollution Control Board. This has been a key impact to the profit this quarter for tyre-makers, who have reported results until now.
Other Key Highlights
They have also announced a dividend of Rs 6 per share.
The company's borrowing for FY24 has reduced to Rs 2,672 crore, down from Rs 3,789 crore for the previous year. This helped interest cost for the quarter come down to Rs 114 crore versus Rs 139 crore over the same period last year. For the full year, interest cost has come was at Rs 505 crore, down from Rs 531 crore.
Shares of Apollo Tyres closed 0.9% lower, as compared with a 0.5% rise in the Nifty 50.
