![\"apollo](\"https:\/\/www.tyremarket.com\/tyremantra\/wp-content\/uploads\/2016\/09\/apollo-300x169.jpg\")
The stock of Apollo Tyres on Thursday (May 12, 2016) managed to attain 3.6 percent in the trading, after a poor show in the fourth quarter (March) results that were announced on Wednesday. The gain in the tyre maker\u2019s kitty came only after management\u2019s optimistic remarks.<\/p>\n
The year-on-year net revenue came down by 5 percent at INR 2966 crore, while net profit saw a slip of 20 percent at INR 245 crore. Both the approximations were considerably lower than the Bloomberg Commodity (BCOM) Index\u2019s estimate of INR 3058 crore and INR 284 crore correspondingly. Another blip on year-on-year basis was of the 36 basis points drop in operating margins at 16 percent against BCOM\u2019s estimate of 16.81 percent.<\/p>\n
The quarter witnessed a decline in the Apollo tyre revenue domestically as well as in its European operations. India operations were hit down by 5 percent, while the European undertakings, which impacted the profits due to change in internal accounting system, saw a decline of 3 percent on year-on-year basis. EBIT (Earnings Before Interest and Taxes) was recorded down to 57 percent at INR 41 crore. Nevertheless, the company stated that this is a one-time hit and will not bother in future.<\/p>\n
Increase in the raw material costs and supply concerns along with pricing pressure due to Chinese tyres in the Indian market are the prime reasons for the stock falls of the tyre manufacturing companies in the recent two months, where Apollo Tyres saw a plunge of around 20 percent.<\/p>\n
Mr. Prayesh Jain, AVP Research at IIFL indicated that the China-made truck-bus radial import continues to disturb the domestic market, as a result pricing will be under pressure although volumes possibly will stay strong. Hence, in near future, profitability will not remain as intense as witnessed in the recent past.<\/p>\n","protected":false},"excerpt":{"rendered":"
The stock of Apollo Tyres on Thursday (May 12, 2016) managed to attain 3.6 percent in the trading, after a poor show in the fourth…<\/p>\n","protected":false},"author":4,"featured_media":824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[532,364,534,333,457,541,432,533,462],"class_list":["post-1285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-apollo-tryes","tag-apollo-tyre-news","tag-apollo-tyre-revenue-india","tag-apollo-tyres","tag-apollo-tyres-growth","tag-apollo-tyres-india","tag-chinese-tyres","tag-truck-bus-radials","tag-tyre-industry-growth-india"],"yoast_head":"\r\n