Q4FY21 Result Update - Apollo Tyres - ICICI Direct

Apollo Tyres (ATL) reported better-than-expected Q4FY21 results. Total consolidated operating income was at Rs. 5,026 crore, up 39.2% YoY. Within key geographies, revenue from APMEA region came in at Rs. 3,688 crore (up 49% YoY) while revenue from Europe region was at Rs. 1,404 crore (up 20.1% YoY). EBITDA margins at 16.2% were down 300 bps QoQ amid gross margin decline of 240 bps. APMEA EBIT margins dropped 386 bps QoQ to 11.9% while Europe margins declined 199 bps QoQ to 4.6%. Consequent consolidated PAT came in at Rs. 287 crore (vs. Rs. 78 crore in base quarter).

Valuation & Outlook

We expect sales, PAT CAGR at 13.9%, 71.6%, respectively in FY21-23E. For ATL, demand outlook appears encouraging across both Indian & European operations. While margins are set to soften, the company's commitment towards deleveraging and better capital efficiency (double digit RoCE) help us retain our positive stance. We maintain BUY rating, valuing ATL at Rs. 260 i.e. 5.75x EV/EBITDA on FY23E numbers (earlier target price Rs. 300).

For details, click on the link below: Link to the report

Shares of APOLLO TYRES LTD. was last trading in BSE at Rs.208.1 as compared to the previous close of Rs. 221.45. The total number of shares traded during the day was 1265946 in over 15561 trades.

The stock hit an intraday high of Rs. 225.95 and intraday low of 204.7. The net turnover during the day was Rs. 267430599.

Source : Equity Bulls

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