Apollo Tyres Limited — Q3 FY25
Apollo Tyres reported Q3 FY25 consolidated revenue of ₹6,930 crore, up 5% YoY, with EBITDA margin of 13.7% (flat QoQ) despite raw material cost pressures.
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.
83%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Why is interest cost not declining despite deleveraging?
Asked by Amyn Pirani, JP Morgan
CFO explained the reason and called it temporary.
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Question
We have seen balance sheet deleveraging for a while now... interest cost is still remaining in that stable range... when do we see the interest cost number actually trending down?
Gaurav Kumar, CFO
The India interest cost has gone up mainly on account of working capital borrowings... a temporary measure.
Partial answer
High priority
Will gross margin improve QoQ with flattish RM and price hikes?
Asked by Amyn Pirani, JP Morgan
Acknowledged rollover impact but gave no quantified margin improvement.
no specific margin guidance
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Question
If RM is flattish, then should gross margin actually improve quarter-on-quarter because of the impact of price hikes?
Gaurav Kumar, CFO
Q4 to Q3, we expect it to be flattish, and to that extent, some rollover impact of price increases should play a little bit into the gross margins.
Answered
Medium priority
Any price hikes recently done or planned?
Asked by Amyn Pirani, JP Morgan
Clear statement that no price hike is planned near-term.
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Question
Anything on price hikes recently done or planned that you would want to call out?
Gaurav Kumar, CFO
Currently, given the market situation... absolute near-term, no price increase is planned.
Answered
High priority
What is volume growth across replacement, OE, and exports?
Asked by Siddhartha Bera, Nomura
Provided specific volume growth numbers for each segment.
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Question
Possible to highlight at an overall level what is the volume growth across replacement, OE, and exports?
Gaurav Kumar, CFO
The volume growth overall for replacement this quarter was 5%, and OE was almost -10%. Exports was flattish.
Partial answer
High priority
Why did export growth slow down compared to peers?
Asked by Siddhartha Bera, Nomura
Explained reasons but did not detail specific initiatives to improve.
no specific corrective actions
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Question
On the export side, we had been seeing very strong numbers in the first half, but suddenly we have seen a very soft growth... anything here why the growth has been suddenly slowing down?
Gaurav Kumar, CFO
One is the particular segments or the markets where we were addressing... demand has been weak... also impacted by strong fluctuations in logistics cost... we are looking into that.
Answered
Medium priority
Any new markets like US being added for exports?
Asked by Siddhartha Bera, Nomura
Named specific new markets for growth.
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Question
Any new markets like U.S., or any new markets we are thinking of adding or growing our network and volumes there?
Neeraj Kanwar, MD and Vice Chairman
We are looking at U.S. as a net growth market... Middle East, specifically in Saudi Arabia.
Answered
High priority
What are CapEx and gross debt for nine months?
Asked by Siddhartha Bera, Nomura
Provided exact numbers for CapEx and gross debt.
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Question
Can you share for the last nine months what would have been the CapEx and FCF? ... gross debt also at a standalone and consolidated level.
Gaurav Kumar, CFO
CapEx for India for the first nine months is INR 350 crores. Gross debt is INR 3,200 crores for India. Consolidated CapEx about INR 500 crores, gross debt about INR 3,500 crores.
Answered
Medium priority
Will full-year CapEx be lower than INR 1,000 crore guidance?
Asked by Siddhartha Bera, Nomura
Confirmed moderation and gave a reasonable assumption of INR 700-800 crores.
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Question
Does that mean that we still hold on to our INR 1,000 crore CapEx for this year, or given the spends, there can be some moderation?
Gaurav Kumar, CFO
There would probably be some moderation. It is highly unlikely that we'll spend INR 500 crores in the last quarter.
Answered
Medium priority
What are Reifen.com revenue and EBITDA margin?
Asked by Siddhartha Bera, Nomura
Provided exact revenue and margin figures.
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Question
If I look at the Reifen.com numbers, if you can share those for the quarter.
Gaurav Kumar, CFO
Reifen.com operations did EUR 88 million in revenue with a +7% in EBITDA margin.
Partial answer
High priority
Why did India standalone gross margin contract 300 bps QoQ?
Asked by Mumuksh Mandlesha, Anand Rathi Shares and Stock Brokers Ltd
Gave a high-level reason but deferred details to IR team.
deferred to IR teamno quantified breakdown
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Question
On the India standalone numbers, QoQ gross margin have contracted in Q3 quarter, almost like 300 basis points. Just, can you explain what has happened?
Gaurav Kumar, CFO
Some part of it is due to the inventory getting consumed... the IR team can walk you through in detail.
Answered
High priority
What is the RM basket cost for Q3?
Asked by Mumuksh Mandlesha, Anand Rathi Shares and Stock Brokers Ltd
Provided specific RM cost and YoY/sequential changes.
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Question
Can you help us with the RM basket for the Q3 quarter, sir?
Gaurav Kumar, CFO
RM was roughly about INR 175 a kg, up 15% vis-à-vis the same quarter last year, but sequentially up 2%.
Partial answer
High priority
How is Apollo balancing market share vs margins in India?
Asked by Jinesh Gandhi, Oaklanecapital
Acknowledged the trade-off but gave no concrete plan or target.
no specific market share target
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Question
On the India business, we have been relooking at our strategy of margin over market share... Any update on that side about how are we thinking about our market share versus margins now?
Gaurav Kumar, CFO
It's not just a clear black and white... The priority to profitability margins will continue to be there... we are addressing that issue in terms of not lagging behind on growth either.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India replacement volume growth 5% | 5% | 5% | Matches filing |
| India OE volume growth -10% | -10% | 5% | Understated vs filing |
| Reifen.com revenue EUR 88 million | 88 | 6,930 | Understated vs filing |
| Reifen.com EBITDA margin 7% | 7% | 13.7% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.