Apollo Tyres Q4 Review - Standing Tall Against All Odds: Dolat Capital

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Dolat Capital Report

Driven by strong growth in replacement markets across segments and improvement in margin of overseas business, Apollo Tyres Ltd. exhibited strong margin despite raw material cost pressure.

Ebitda grew 70% YoY to Rs 8.15 billion with margin at 16.2%.

The management expects Q1 numbers to be weak for India due to lockdown in many states, demand is expected to revive strongly post May 2021 and expected clock 20% revenue growth for FY22.

European business to see double digit revenue growth and strong margin expansion.

Blended raw material costs increased sequentially by ~12% in Q4 and expected to increase by high single digit for Q1 FY22.

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