- 08 Aug 2024
- ICICI Securities
RISE IN RM COSTS AND OTHER EXPENSES TAKE A TOLL ON Q1FY25 RESULTS
APOLLOTYRE - 492 Change: 3.75 (0.77 %)News: Total operating income on consolidated basis in Q1FY25 stood at ₹ 6,335 crores, up 1.4% YoY. EBITDA for the quarter stood at ₹ 909 crore with EBITDA margins at 14.4%, down 200 bps QoQ. Consequent consolidated PAT for Q1FY25 came in at ₹ 302 crores, down 24% on YoY basis. On standalone basis it reported an EBITDA margin of 13.8%, down 180 bps QoQ. Gross margins declined by 250 bps on QoQ basis.
Views: QoQ decline in margins came in ahead of estimates. Apart from gross margin decline, rise in other expenses was also a key dampener for the quarter. With unprecedented rise in natural rubber prices, the margin decline has not bottomed out with other industry players indicating further muted show in next quarter i.e. Q2FY25. We await management commentary on demand prospects both in domestic and foreign markets & sustenance level of margin trajectory going forward.
Impact: Negative