Apollo Tyres Ltd, based in Gurgaon, India, has been a key player in tire manufacturing and sales since its inception in 1972. Over the years, it has experienced substantial growth and expanded its worldwide footprint. Operating across seven state-of-the-art tire plants in Asia and Europe, the company exports its products to over 100 nations. With its flagship brands, Apollo and Vredestein, it offers a wide array of products, including tires for passenger cars, light trucks, truck-buses, off-highway vehicles, and two-wheelers, along with retreading materials and retreaded tires.
Business Model:
Established in 1972 with a comprehensive market presence and long-term relationships with global OEMs.
Dual listing on NSE and BSE with a current Market Capitalization of approximately INR 120,000 Mn.
Boasts a seasoned leadership team and a robust Board comprising 7 independent directors and 7 non-independent directors.
Supported by renowned private equity firm Warburg Pincus.
Operates 7 manufacturing plants, 5 in India and 2 in Europe.
Houses 2 R&D centers in Asia/Europe and 1 testing center in Europe.
Established a Digital Innovation Hub in London utilizing AI and ML technologies.
Achieved high rankings in European and North American PCLT test results.
Holds a leading position in India for Truck & Bus and Passenger vehicles.
Maintains a strong foothold in Europe, particularly in fast-growing passenger car segments.
Boasts an extensive network with 7,200 dealers in India, 7,200 touchpoints in Rural India, and 7,000 dealers in Europe.
Company Valuation
Sector
Automobile and Auto Components
NSE
APOLLOTYRE
BSE
500877
Market Capitalization
Rs 32,952 Crore (As of Mar 07, 2023)
Book Value Per Share
Rs 202.77
Face Value
Rs 1
P/E ratio
18.62
52 week H/L
557.90 / 303.35
Dividend Yield (%)
0.87
Shareholding Pattern
Particulars
Mar-23
Jun-23
Sept-23
Dec-23
Foreign Promoters %
0.42
0.42
0.42
0.42
Indian Promoters %
36.92
36.92
36.92
36.92
DIIs %
19.35
18.87
19.31
23.58
FIIs %
22.35
23.33
22.1
17.96
Others %
20.96
20.46
21.25
21.12
Ratios (Consolidated)
Particulars
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
ROCE %
7.39
5.3
5.93
7.35
10.87
ROE %
6.86
4.77
3.28
5.51
8.97
ROA %
3.11
2
1.3
2.23
3.9
Interest Coverage Ratio
5.47
2.81
2.21
2.82
3.59
D/E
0.49
0.68
0.56
0.52
0.43
P/B
1.26
0.46
1.24
1.03
1.58
Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Share Capital
57
57
64
64
64
Reserves
9,983
9,873
11,380
11,689
12,814
Borrowings
4,930
6,764
6,434
6,118
5,588
Other Liabilities
6,974
8,744
10,383
11,075
8,822
Total Liabilities
21,944
25,437
28,260
28,945
27,287
Fixed Assets
11,754
15,448
16,420
17,591
17,653
Capital WIP
1,520
1,622
1,107
618
199
Investments (Long Term)
6
19
20
40
34
Other Assets
8,664
8,348
10,714
10,696
9,401
Total Assets
21,944
25,437
28,260
28,945
27,287
Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
TTM
Sales
17,549
16,327
17,397
20,948
24,568
25,367
Other Income
123
47
129
123
41
96
Expenses
15,573
14,392
14,579
18,353
21,235
20,949
Operating Profit
2,099
1,982
2,947
2,718
3,374
4,513
OPM%
12
12
17
13
14
18
Interest
199
300
463
465
551
530
Depreciation
813
1,138
1,315
1,400
1,419
1,462
Profit Before Tax
888
543
561
848
1,427
2,503
Tax%
23
12
38
25
23
28
Net Profit
680
476
350
639
1,105
1,795
PATM%
4
3
2
3
4
7
Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Cash from Operating Activity
1,071
2,517
2,447
2,239
2,134
Cash from Investing Activity
-996
-2,796
-2,344
-1,181
-476
Cash from Financing Activity
-62
472
152
-1,175
-1,692
Net Cash Flow
13
194
255
-118
-34
Q3 FY24 Result Update:
Apollo Tyres recorded a significant 78.1% year-on-year increase in net profit, reaching ₹496.6 crore for the third quarter ending December 31, 2023.
Compared to the same quarter last year, the company’s net profit was ₹278.8 crore, as stated in a regulatory filing.
Revenue from operations also saw growth, rising by 2.7% to ₹6,595.4 crore from ₹6,422.8 crore in the corresponding period of the previous fiscal year.
At the operational level, EBITDA surged by 32.2% to ₹1,208.1 crore in the third quarter of the current fiscal year, compared to ₹913.4 crore in the same period last fiscal.
The EBITDA margin for the reporting quarter stood at 18.3%, a notable increase from 14.2% in the corresponding period of the previous fiscal year. EBITDA represents earnings before interest, tax, depreciation, and amortization.
Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Sales
5,956
6,423
6,247
6,245
6,280
6,595
Other Income
7
7
17
36
25
18
Expenses
5,244
5,509
5,249
5,193
5,120
5,387
Operating Profit
719
920
1,015
1,087
1,185
1,226
OPM%
12
14
16
17
19
19
Interest
132
142
139
135
133
123
Depreciation
349
354
372
362
360
368
Profit Before Tax
238
424
526
576
680
721
Tax%
18
31
19
31
30
31
Net Profit
194
292
427
397
474
497
PATM%
3
5
7
6
8
8
Conclusion: Apollo Tyres showcases solid fundamentals supported by its broad market reach, robust partnerships with global OEMs, and a varied product lineup. Its experienced leadership and support from renowned private equity firms underscore its stability. Through strategic investments in technology and innovation, alongside its strong positions in key markets, Apollo Tyres is well-positioned for continued growth and success in the coming years.
