Apollo Tyres Limited — PPTs, 14-11-2024: Investor Presentation

**Financial Highlights:** Apollo Tyres reported consolidated revenue of ₹64,370 Mn for Q2 FY25, reflecting a 2.5% year-on-year increase. However, EBITDA fell sharply by 24.3% to ₹8,779 Mn, resulting in an EBITDA margin of 13.6%, down 483 basis points from the previous year. Year-to-date, revenue reached ₹127,719 Mn (+2.0% YoY) with EBITDA at ₹17,871 Mn (-19.2% YoY), leading to a margin of 14.0%.

**Strategic Initiatives and Growth Drivers:** The company experienced growth in the replacement segment, aided by double-digit growth in truck radial and farm segments. Price increases were implemented to mitigate raw material cost pressures, which were up 15% YoY.

**Business Developments:** Despite a challenging operating environment with margin contractions due to inflation, Apollo continues to focus on business fundamentals, cost control, and cash flow generation.

**Market Position and Competitive Advantage:** The firm is gaining traction in the UHP/UUHP segments in Europe, achieving a 74 basis point improvement in EBITDA margins YoY in this region.

**Investor Implications:** Investors should note the tempered revenue growth and significant margin compression amid rising costs. Continued focus on operational efficiency and market share expansion suggests a cautious yet positive outlook, encouraging close monitoring of forthcoming performance metrics.