Views on Apollo Tyres Ltd 1QFY2016 Results - Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Apollo Tyres Ltd 1QFY2016 Results:

"Apollo Tyres Ltd (ATL) 1QFY2016 results were below estimates primarily on account of lower than anticipated topline. ATL revenues declined double digits owing to degrowth in both the domestic as well as European operations. Domestic operations surprised negatively with revenues dipping 7% as against our expectation of a marginal growth. Price cuts alongwith increased imports from China impacted the topline. European operations expectedly degrew 12% primarily on account of Euro depreciation. The operating margins at 17.7% improved sharply 460 bp yoy coming in line with our estimates. Decline in raw material prices (both rubber and crud based) led to steep margin improvement. Given the subdued topline, the Net Profit at INR 291 cr was lower than our estimates of INR 326 cr. The topline is expected to remain under pressure in the near term due to increased threat from Chinese imports and significant depreciation of the Euro vis a vis the INR. Given the above concerns, we maintain our NEUTRAL view on the stock."

Shares of APOLLO TYRES LTD. was last trading in BSE at Rs.187.5 as compared to the previous close of Rs. 182.95. The total number of shares traded during the day was 680805 in over 7126 trades.

The stock hit an intraday high of Rs. 189.3 and intraday low of 180.9. The net turnover during the day was Rs. 126677785.

Source : Equity Bulls

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