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Apollo Tyres Up Most In At Least A Year On Q1 Profit Beat

The Gurugram-based company posted a net profit of Rs 190.6 crore, up 49% over the same period last year.

<div class="paragraphs"><p>Apollo Tyre store exterior with namesign. (Source: BQ Prime) &nbsp;</p></div>
Apollo Tyre store exterior with namesign. (Source: BQ Prime)  

Shares of Apollo Tyres Ltd. gained the most in at least a year after the tyre manufacturer posted profits in Q1 that exceeded analyst estimates.

The Gurugram-based company posted a net profit of Rs 190.6 crore, up 49% over the same period last year. That also compares with a Bloomberg analyst estimate for profit of Rs 131 crore.

Key Highlights (Consolidated, YoY)

  • Revenue up 30% at Rs 5,942 crore vs Rs 4,584 crore (Bloomberg estimate: Rs 5,682 crore)

  • Ebitda up 22% at Rs 689.80 crore vs Rs 566.7 crore

  • Ebitda margin 11.6% vs 12.3%

Further, the company also fixed the tenure of Onkar Kanwar as chairman for five years starting Feb. 1, 2023.

It also approved the issuance of non-convertible debentures on private placement basis aggregating Rs 1,000 crore to be allotted, in one or more tranches, within the limits approved by the shareholders in the annual general meeting on July 11.

Shares of the company gained as much as 7.7% as of 10:30 a.m. This is the most in at least a year. Trading volume was 11 times the average for this time of the day.

Of the 31 analysts tracking the company, 22 maintain 'buy', four suggest 'hold', while five recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies a downside of 4.4%.