InvestorQ : Why have Apollo Tyres profits fallen so sharply?
shrinidhi Rajan made post

Why have Apollo Tyres profits fallen so sharply?

Answer
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Riya Dwivedi answered.
1 year ago


Apollo Tyres reported 44% fall in profits to Rs.142 crore for the June quarter. Revenue was up less than 1% at Rs.4331 crore. The EBIT margin saw a fall from 12.5% to 11% in the June quarter due to higher cost pressures. The stock price of Apollo has almost halved in the last one year and this gives the stock margin of safety. This is not the time to exit the stock but to buy more at the current attractive levels. The decision of the government to impose higher import tariffs on radial tyres imported from China will also improve the margins of Apollo in the coming quarters. Look to buy and accumulate at these levels.