Apollo Tyres Surges 12%, Hits 52-Week High As Profit Rises Over Two Fold In Q3FY21 YoY

Shares of Apollo Tyres in intra-day trade on Thursday (February 4, 2021) jumped over 12% to hit fresh 52-week high of Rs. 255.7 per share on the NSE. This is after the tyre and rubber products firm posted two-fold surge in Q3 profit to Rs. 444 crore as against Rs. 174 crore during the same period a year-ago. The consolidated net profit has more than doubled during the review period on the back of healthy operational performance as well as other income. In the previous quarter, the company posted net loss of Rs 246.20 crore.

Apollo Tyres Surges 12%, Hits 52-Week High As Profit Rises Over Two Fold In Q3FY21 YoY

Consolidated operating income at the firm also registered a growth of 17 percent YoY to Rs. 5154 crore. The strong topline performance is attributed to strong recovery in demand across segments in the country that has been triggered by strong growth in both OEM and replacement segments.

Sales at the firm also surged by 14 percent to Rs 4,965 crore, as against 4,347 crore in the year-ago period.

"Consolidated margins were at a decade high 19.2 per cent, up 297 basis points (bps) quarter-on-quarter and 710 bps YoY. The margin performance was helped by recovery in topline, subdued raw material cost, and control over costs," the company said.

Also, owing to resilience in topline performance and cost control measures, control over capital expenditure as well as working capital optimization, the tyre manufacturing firm generated free cash flow to the tune of Rs. 1200 crore YTD in FY21.

At around 12:23 pm, the scrip of Apollo Tyres quoted higher by 6% at Rs. 241.4 per share on the NSE.

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