Apollo Tyres Ltd. share price target

Apollo Tyres' (ATL) Q1FY19 consolidated revenues were at | 4,288 crore (up 30.6% YoY) vs. our estimate of | 3,922 crore. In terms of region, broadly revenues (adjusting excise duty) from Asia Pacific Middle East and Africa (APMEA) increased ~33.2% YoY to ~| 3,103 crore (largely volume driven) while revenue from Europe increased ~22.2% YoY to ~| 1242 crore mainly supported by a better product mix and favourable currency movement. Volumes of its European operations (manufacturing) grew ~2% YoY...

Consolidated revenue in the quarter grew by 31% YoY to Rs42.9bn. APTY reported revenue growth at both India and European operations. Consolidated EBITDA in the quarter increased by 92% YoY on the back of increased revenues and reduction in raw material cost. In 1QFY18, due to rise in raw material prices, margins and earnings were significantly impacted. Accordingly the high growth is also due to low base. On the back of improved operational performance and low...

Led by >32% YoY growth in volume, ATL's revenue grew by a strong 32% YoY to Rs30.2bn. Truck tyres' volume grew by a healthy 50% YoY on account of ~40% reduction in import of Chinese TBRs coupled with strong OEM sales, which enabled ATL to register a stellar growth in TBR segment. Moreover, PC segment also recorded 20% YoY volume growth. European operations...

Consolidated revenue grew by robust 21.2% YoY in Q4FY18 led by strong growth across India and European operations. EBITDA margin increased by 161 bps YoY to 12.8% owing to sharp 257 bps YoY...

ICICI Securities Ltd | Retail Equity Research Apollo Tyres' (ATL) Q4FY18 consolidated revenues were at | 4,031 crore (up 21.2% YoY) above our estimate of | 3,890 crore. Revenues (adjusting excise duty) from Asia Pacific Middle East and Africa (APMEA) increased ~18.8% YoY to | 2,883 crore while revenue from Europe increased 22.2% YoY to | 1208 crore EBITDA margins came in at 12.8% (up 166 bps YoY, 52 bps QoQ) below our estimate of 13%. Margins on a QoQ basis were higher...

Operating Margin Improves YoY as well as QoQ ATL's EBITDA grew by 39% YoY and 4% QoQ to Rs5.1bn on the back of higher-than-expected sales volume, better product-mix and benign raw material prices. EBIDTA margin expanded by 166bps YoY and 52bps QoQ to 12.8% in 4QFY18. The Management envisages that the input prices are likely to inch up moderately from current quarter onwards, while company took 2%...

Apollo Tyres (ATL) has reported a better-than-expected performance on all counts in 3QFY18, mainly led by higher volume and benign raw material prices. Consolidated revenue grew by ~17% YoY to Rs40.2bn mainly led by 16% YoY volume growth aided by robust growth in TBR volume. EBITDA came in at Rs4.6bn (-3% YoY and +51% QoQ) vs. our estimate of Rs4.3bn. A better product-mix and steady raw material prices resulted in better operating profit, while EBITDA margin stood at 11.5% (+256bps QoQ). Net profit grew sequentially by 75% to Rs2.5bn, while on YoY comparison it declined by 17%. Sales volume across the segments (barring Passenger Vehicles) was strong. Outlining 3.0mn loss in Hungarian operations has peaked during the...

volumes along with offering a good pricing power and better margins to Apollo. We continue to remain sanguine on Apollo Tyres (Apollo) with an upgraded target of Rs307 (Rs 275 earlier), now valuing the company at 12x FY 20E earnings. Domestic tyre demand gains momentum as vehicular demand moves up Apollo's Q2 FY18 volumes increased by 10% yoy as truck OEM business flourished by 40%. Truck Replacement business grew by mid-single digit while PV demand also grew in a similar range. Improving industrial activity, good monsoon and relief post BS IV transition and GST implementation led to strong OEM truck demand. PCR sales were...

APTY's 2QFY18 results improved QoQ, but remained significantly weak YoY. Raw material price increase and weak performance at European operations impacted company's 2QFY18 results YoY. Consolidated revenue during the quarter was Rs34.7bn, 13% higher YoY. EBITDA and PAT declined by 17% YoY and 46% YoY respectively. Rubber prices have been stable and that should support EBITDA margins QoQ. EBITDA margins on a YoY basis is expected to stay lower in 2HFY18. While FY18 is expected to be a weak year for APTY, we expect performance to improve over FY19/FY20. We cut our earnings to factor in weak performance in...

ICICI Securities Ltd | Retail Equity Research Apollo Tyres' (ATL) Q2FY18, consolidated revenues grew 12.7% YoY to | 3,477 crore as India business reported strong growth of 18% YoY (volume growth of ~10% YoY while the value & product mix grew 8% YoY). Revenues (adjusting excise duty) from Asia Pacific Middle East & Africa (APMEA) grew 17.8% YoY to | 2,519 crore while revenue from Europe increased 1.4% YoY to | 1006 crore EBITDA margins were at 10.5% (down 373 bps YoY, up 216 bps...