- 08 Feb 2024
- ICICI Securities
APOLLO TYRES POSTED HEALTHY PERFORMANCE IN Q3FY24
APOLLOTYRE - 475 Change: 8.10 (1.74 %)News: Total operating income on consolidated basis in Q3FY24 stood at ₹ 6,595 crores, up 3% YoY. EBITDA for the quarter stood at ₹ 1,208 crore with EBITDA margins at 18.3%, down 20 bps QoQ. Consequent consolidated PAT for Q3FY24 came in at ₹ 497 crores, up 5% on QoQ & 70% on YoY basis. Its overseas operations reported 170 bps margin expansion (EBITDA margins: 18.7%) in a seasonally important quarter.
Views: Company’s performance in terms of gross margin on standalone basis was ahead of its peers in listed space with Apollo reporting ~100 bps expansion vs. decline for rest of the peers till date. The gains however were limited due to higher other overhead costs with EBITDA margins on standalone basis coming in at 18.1% (down 100 bps QoQ). We await management commentary on demand prospects both in domestic and foreign markets & sustenance of this margin trajectory going forward.
Impact: Positive