Apollo Tyres Limited — Q2 FY25
Apollo Tyres reported a challenging Q2 FY25 with consolidated revenue of ₹6,440 crore (+3% YoY) and EBITDA margin of 13.6%, down ~70bps sequentially due to raw material cost inf...
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
RM cost increase in Q2 and expected Q3 increase, current under-recoveries
Asked by Raghunandan
Provided specific sequential percentages for Q2 and Q3 RM cost increase.
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Question
can you indicate that in India, Q2, what was the RM cost increase in Q2? And in Q3, further, how much cost increase do you expect? And if you can also talk about what is the current under-recoveries?
Gaurav Kumar, CFO
the RM went up by about 8% sequentially. Our expectation going forward is just about a 1%+ increase for Q3. As per current expectations, the RM should start coming down.
Answered
High priority
Price hike quantum and under-recovery quantification
Asked by Raghunandan
Provided specific price hike ranges and quantified under-recovery.
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Question
What is the kind of price hike you are planning to take, and if you can quantify the under-recovery?
Gaurav Kumar, CFO
we have taken price increase ranging from 2-odd percent in the truck segment to a larger quantum in the PCR segment. The under-recovery from last year is about 6-odd percent.
Answered
High priority
Volume performance YOY in India, split by export, replacement, OEM
Asked by Raghunandan
Provided specific volume growth rates for each segment.
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Question
for Q2 for India, if you can share, what was the volume performance YOY, and within that, export, replacement, and OEM, how was it?
Gaurav Kumar, CFO
the volume for Q2 Y on Y, Raghu, was flattish. Within that, the replacement was mid-single-digit growth. Exports was a double-digit growth, and OEM was a double-digit negative.
Answered
High priority
Outlook for replacement TBR and PCR, market share thoughts
Asked by Raghunandan
Provided double-digit growth outlook for replacement TBR and PCR.
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Question
Within replacement, how would you see the outlook for full year for TBR and PCR, and also your thoughts on the market share?
Gaurav Kumar, CFO
both for TBR and PCR, full year, the replacement should be around a double-digit growth. Right now, in near term, the signs of recovery from OE are not there.
Answered
High priority
Europe market outlook, margin performance drivers
Asked by Raghunandan
Provided market growth rate, company performance, and margin drivers.
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Question
Outlook for the Europe market... how do you see the recovery panning out? ... what has supported the performance? And ... how the product mix and cost-saving efforts can help the margins ahead?
Gaurav Kumar, CFO
the EU market... has shown a growth of about 3% on the passenger car segment... We've also grown in line with that slightly ahead. The reason on the margin performance is that a large part of the raw material cost push was driven by natural rubber, which is a much smaller proportion for the European operations...
Partial answer
Medium priority
Market share gains across replacement and OE, numbers and aspirations
Asked by Siddharth Bera
Provided aspirational targets but no current market share numbers.
no specific current market share numbers givenaspirational targets without timeline
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Question
Is it across both replacement and OE? ... Any numbers, sir, if you have, and where do we aspire to maybe go to, say, maybe in the next couple of years?
Gaurav Kumar, CFO
our market shares in OE would be around similar levels. We've started regaining some of the market share on the replacement side. ... on the truck side, our aspirations ... would be to get back into the 30s in terms of market share ... in passenger car ... somewhere in the 20s to early 20s.
Partial answer
Medium priority
Other cost stickiness in India business, expected improvement
Asked by Siddharth Bera
Explained reasons but did not quantify or give clear outlook.
no quantification of cost increasesdifficult to predict on freight
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Question
in this quarter, in the India business, we saw other cost remaining probably quite steady despite a drop in the volumes. ... anything to highlight here why it has been so sticky and should we expect more cost increase in the coming quarters?
Gaurav Kumar, CFO
The increase in the other cost is on account of freight costs... secondly, on account of the EPR... thirdly, on account of advertising. The freight rate is very much dependent on how the overall macro environment is. Difficult to predict...
Evasive
Medium priority
Working capital increase, CapEx, net debt outlook
Asked by Siddharth Bera
Did not provide net debt estimate, only qualitative assurance.
no net debt estimate givendeferred to profitability dependency
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Question
we have seen quite a steep increase in probably the inventory levels... do you think a part of this normalizes in the second half? ... where do you think the net debt settles at by the end of the year?
Gaurav Kumar, CFO
The CAPEX levels would remain. Difficult to give you an estimate on where it would be at the end of the year because that depends on profitability. But it is well under control. Inventories is a temporary phenomenon. That should get corrected.
Answered
High priority
Top-line growth weaker than peers, reasons
Asked by Amar
Explained reasons for weaker top-line growth with specifics.
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Question
we have seen over the last several quarters, the top-line growth has kind of been weaker as compared to some of our peers... is that largely due to maybe in the OEMs, our share going down?
Neeraj Kanwar, MD and Vice Chairman
Two things that have gone negative for us is, one, OEs have been... down and out... Also, export markets... are weak... But if you see replacement in India... we've had a double-digit growth... we are only looking at premiumization of our PCR tires and not going down on pricing.
Evasive
High priority
Margin gap with peers narrowing, reasons and outlook
Asked by Amar
Acknowledged issue but gave no concrete reasons or numbers.
no specific reasons givendeferred to future improvement
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Question
if you look at the kind of margins that we have been delivering... the difference between you and number three guy has come down quite a bit... if you could shed some light on that as well.
Neeraj Kanwar, MD and Vice Chairman
I think that is a focus area for us also... we do see that the gap has narrowed. We are doing more analysis to see what has gone wrong... I can only tell you, going forward, you will see margin improvement over time...
Evasive
Medium priority
Quantification of higher other expenses and correction timeline
Asked by Amar
Did not quantify expenses or provide correction timeline.
no quantificationno timeline for correction
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Question
if you can quantify some of these higher other expenses, and when should we see them maybe correcting a little bit, maybe freight costs, advertising, etc.?
Gaurav Kumar, CFO
the advertising part continues at a certain level... as the volume growth and some of the normal market growth keeps coming in, the other expenses will not increase in those proportions.
Answered
High priority
Price increase reflection in Q2 and Q3
Asked by Joseph George
Provided specific split of price increase reflection between quarters.
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Question
how much of this is reflected in the Q2 results and how much of it is yet to come, which means that it will come in the third quarter?
Gaurav Kumar, CFO
On the truck side, we've taken about half of the price increase of the 2% in the current quarter, which will flow through. On the passenger car side, a larger chunk, about 3%, has been taken in the current quarter, which would only have reflected partially.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Volume flattish YoY in Q2 India | 0% | 3% | Understated vs filing |
| Replacement mid-single-digit growth | 5% | 3% | Overstated vs filing |
| Exports double-digit growth | 10% | 3% | Overstated vs filing |
| OEM double-digit negative growth | -10% | 3% | Understated vs filing |
| Reifen.com revenue EUR 45 million in Q2 | 45 | 6,440 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.