Apollo Tyres Q2 Review - On The Right Track; Value Drivers Firmly In Place: ICICI Direct

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Apollo Tyres Ltd. is a leading tyre manufacturer, with operations in India and Europe with an installed capacity of ~7.9 lakh million tonne per annum. In India, ATL has substantial presence in truck and bus radial tyre (31% market share) and passenger car radial tyre space (21% market share).Derives ~67% revenues from APMEA (largely India), ~32% from Europe.FY21 segment mix: Truck/bus ~43%, PV ~35%, OHT ~11%, others ~11%The company posted a healthy operational Q2 FY22 performance.Total consolidated operating income was up 10.7% QoQ to Rs 5,077 crore.Ebitda margins rose 20 bps QoQ to 12.6% amid limited gross margin dip.Consolidated PAT at Rs 174 crore was up 36% QoQ. Key triggers for future price performanceExpected India commercial vehicle cyclical rebound, higher radialisation levels, pent up demand in PV and network expansion to be major topline drivers. We expect India-led 16.9% FY21-23E net sales CAGR.Higher cost competitiveness post Dutch plant specialisation, Europe mix improvement, operating leverage benefits to result in 13.8% FY23E margins.Ongoing deleveraging focus to accentuate PAT, return ratio momentum..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apollo Tyres Q2 Review - On The Right Track; Value Drivers Firmly In Place: ICICI Direct

Apollo Tyres Q2 Review - On The Right Track; Value Drivers Firmly In Place: ICICI Direct

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