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Please refer to important disclosures at the end of this report 1
EBITDA 382 333 14.9 367 4.2
EBITDA Margin (%) 11.9 10.3 158bp 10.9 101bp
Source: Company, Angel Research
Apollo Tyres (APTY) results for 3QFY2013were subdued as the consolidated top-line performance across the threegeographies remained weak mainly on account of sluggish demand amid weakeconomic environment. The consolidated top-line stood flat (down 4.7% yoy) at
`3,217cr, lower than our estimate of `3,559cr on account of a 2.7% and 0.5%yoy decline in revenues in India and Europe respectively. Nonetheless, theconsolidated EBITDA margin expanded ~100bp sequentially (~160bp yoy) to11.9%, led by receding raw-material cost pressures. However, higheradvertisement expenses towards brand building restricted further marginexpansion. The EBITDA margins in India, Europe and South Africa expanded by200bp, 160bp and 200bp to 10.1%, 4.8% and 20.1% respectively. Further,higher other income (on forex gains and insurance proceeds) and lower tax rateresulted in a 40.7% yoy (17.8% qoq) growth in the adjusted net profit to `180cr.
APTYs standalone results wereimpacted by a significant decline in the OEM demand for medium and heavycommercial vehicle (MHCV) tyres (volume down ~40% yoy) which led to a 2.7%
yoy (10.8% qoq) decline in the top-line. The EBITDA margin too remained underpressure on a sequential basis as it expanded by a modest ~20bp (strong 200bpyoy) to 10.1%, despite the decline in raw-material expenses. However, led byhigher other income, sequential decline in the bottom-line was restricted to 1.8%.
We lower our volume estimates for FY2013/14 to accountfor the subdued demand scenario in the key geographies of India and Europe.Nonetheless, our earnings estimates for FY2013 are revised upwards as we factorin the higher other income during the quarter. We remain positive on the tyreindustry in view of the structural shift that the industry is witnessing and also dueto the softening of natural rubber prices. However, we remain watchful of thecapital expenditure plans of the company in the absence of proper clarity on thequantum and usage of funds. Further, raising of funds through QIP and issue ofwarrants to promoters is also likely to remain an overhang on the stock as it will
result in equity dilution of ~20%.
% chg 9.2 37.1 7.5 11.0
% chg (27.8) (4.3) 59.8 11.0
EBITDA (%) 11.0 9.4 11.5 11.8
P/E (x) 9.7 10.4 6.5 5.9
P/BV (x) 1.8 1.5 1.2 1.0
RoE (%) 19.6 15.7 21.0 19.4
RoCE (%) 15.6 14.9 17.8 18.3
EV/Sales (x) 0.7 0.5 0.5 0.4
EV/EBITDA (x) 6.5 5.8 4.2 3.6
Source: Company, Angel Research
CMP `85
Target Price `97
Investment Period 12 Months
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 43.4
MF / Banks / Indian Fls 18.3
FII / NRIs / OCBs 24.4
Indian Public / Others 13.9
Abs. (%) 3m 1yr 3yr
Sensex 4.4 10.9 23.4
Apollo Tyres 0.0 16.2 60.7
19,640
5,959
APLO.BO
4,276
1.3
102/71
412,377
1
2,377
Market Cap (`cr)
Beta
52 Week High / Low
Net Debt (`cr)
APTY@IN
Face Value (`)
BSE Sensex
Nifty
Reuters Code
Tyre
Avg. Daily Volume
022-3935 7800 Ext: 6844
Performance highlights
3QFY2013 Result Update | Auto Ancillary
February 6, 2013
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Apollo Tyres | 3QFY2013 Result Update
February 6, 2013 2
Exhibit 1:Quarterly financial performance (Consolidated)
Consumption of RM 1,842 2,002 (8.0) 2,048 (10.0) 5,668 5,471 3.6(% of Sales) 57.3 62.0 60.7 58.1 61.3
Staff Costs 356 351 1.4 353 0.8 1,097 1,033 6.2
(% of Sales) 11.1 10.9 10.5 11.2 11.6
Purchase of traded goods 168 138 22.0 185 (9.2) 533 456 16.8
(% of Sales) 5.2 4.3 5.5 5.5 5.1
Other Expenses 469 405 15.9 422 11.2 1,359 1,157 17.4
(% of Sales) 14.6 12.5 12.5 13.9 13.0
OPM (%) 11.9 10.3 10.9 11.3 9.0
Interest 81 75 6.9 83 (2.8) 239 209 14.1Depreciation 92 82 11.6 91 0.8 277 235 17.6
Other Income 27 (2) (1,212.0) 14 91.8 51 16 216.1
Extr. Income/(Expense) - 29 - 0 - - 29 -
(% of Sales) 7.3 4.4 6.1 6.5 3.9
Provision for Taxation 56 44 25.7 53 4.4 163 93 75.8
(% of PBT) 23.6 31.1 25.9 25.7 26.8
Share in profit/(loss of asso. (1) (0) (1) (2) (1)
Minority interest 0 0 0 0 0
Adj. PATM 5.6 4.0 4.5 4.8 3.2
Equity capital (cr) 50.4 50.4 50.4 50.4 50.4
Source: Company, Angel Research
Exhibit 2:3QFY2013 Actual vs Angel estimates
EBITDA 382 408 (6.2)
EBITDA margin (%) 11.9 11.5 43bp
Source: Company, Angel Research
For 3QFY2013, APTYs consolidated
top-line stood flat at `3,217cr (down 4.7% qoq) which was lower than our
expectations of `3,559cr, mainly on account of lower-than-expected top-line
performance across the three geographies. The company registered a volume
decline of 3%, 1% and 3% yoy in India, Europe and South Africa operations
respectively during the quarter. As a result, top-line in India and Europe posted adecline of 2.7% (down 10.8% qoq) and 0.5% yoy (modest growth of 2.6% qoq)
respectively. While Indian operations were impacted by significant slowdown in the
medium and heavy commercial vehicle (MHCV) segment; Europe operations were
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Apollo Tyres | 3QFY2013 Result Update
February 6, 2013 3
under pressure due to the weak macroeconomic environment in the region. South
Africa operations too posted a modest growth of 5.8% yoy (3.6% qoq) as sales
continue to be impacted due to the availability of cheaper imports in the country.
Exhibit 3:Top-line stood flat
Source: Company, Angel Research
Exhibit 4:Revenue-mix Geography-wise
Source: Company, Angel Research
Exhibit 5:Segmental performance
India 2,036 2,093 (2.7) 2,283 (10.8) 6,471 5,899 9.7
SA 406 383 5.8 391 3.6 1,190 965 23.2
Europe 816 820 (0.5) 795 2.6 2,261 2,172 4.1
Others 53 35 50.1 49 7.7 152 76 99.1
India 169 123 37.3 179 (5.5) 520 327 59.3
SA 5 (30) - (4) - 6 (32) -
Europe 141 129 8.8 113 24.2 347 268 29.6
Others 4 (2) - 5 - 9 (4) -
India 8.3 5.9 7.9 8.0 5.5
SA 1.2 (7.8) (1.1) 0.5 (3.3)
Europe 17.2 15.8 14.2 15.3 12.3
Source: Company, Angel Research
On the operating front,
EBITDA margins expanded across the geographies led by receding raw-material
cost pressures (average natural rubber prices down by 14.5% yoy and 4% qoq). As
a result, the raw-material expenses declined by 6.1% qoq (10% yoy) during the
quarter. The consolidated EBITDA margin expanded ~100bp sequentially to
11.9%, against our expectations of 11.5%. The EBITDA margins in India, Europe
and South Africa expanded by 200bp, 160bp and 200bp to 10.1%, 4.8% and
20.1% respectively. However, higher advertisement expenditure towards brand
building led to a 210bp yoy and qoq increase in other expenses as a percentage
of sales which restricted further margin expansion.
2,369
2,730 2,8222,871
3,2283,231 3,165
3,3753,217
3.2
27.3
55.0
47.3
36.318.4
12.117.5
(0.3)
(10.0)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
3QF
Y11
4QF
Y11
1QF
Y12
2QF
Y12
3QF
Y12
4QF
Y12
1QF
Y13
2QF
Y13
3QF
Y13
(%)(`cr) Net sales % chg
1,432
1,7621,961
1,845
2,0932,259
2,1522,283
2,036
300 354 280 302 383 339 393 391 406
649 623 604749 820 677 650
795 816
0
500
1,000
1,500
2,000
2,500
3Q
FY11
4Q
FY11
1Q
FY12
2Q
FY12
3Q
FY12
4Q
FY12
1Q
FY13
2Q
FY13
3Q
FY13
(`cr) India South Africa Europe
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Apollo Tyres | 3QFY2013 Result Update
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Exhibit 6:Average natural rubber price trend
Source: Company, Angel Research
Exhibit 7:EBITDA margin improves to 11.9%
Source: Company, Angel Research
APTYs adjusted net profit registered a strong growth of 40.7% yoy (17.8% qoq) to
`180cr as against our expectations of `166cr. The bottom-line growth was
boosted by higher other income (on forex gains and insurance proceeds) and
lower tax rate (23.6% as against 31.1% in 3QFY2012 and 25.9% in 2QFY2013).
Exhibit 8:High other income and lower tax-rate aids net profit
Source: Company, Angel Research
78 72
98 102119
142
165 177
195
225 229211 203
191 193
181 174
0
50
100
150
200
250
3QFY09
1QFY10
3QFY10
1QFY11
3QFY11
1QFY12
3QFY12
1QFY13
3QFY13
(`/kg)
11.5 11.38.2 8.3 10.3
11.1 11.1 10.9 11.9
58.764.5 66.0 67.0 66.3 64.8
61.866.2
62.5
5.0
15.0
25.0
35.0
45.0
55.0
65.0
75.0
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%) EBITDA margin Raw-material cost/sales
121 193 77 78 98 157 138 152 181
5.1
7.1
2.7 2.73.0
4.9 4.4 4.5
5.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0
50
100
150
200
250
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%)(`cr) Net profit Net profit margin (RHS)
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Apollo Tyres | 3QFY2013 Result Update
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Exhibit 9:Quarterly financial performance (Standalone)
Consumption of RM 1,373 1,537 (10.7) 1,636 (16.0) 4,514 4,345 3.9(% of Sales) 67.5 73.4 71.7 69.8 73.7
Staff Costs 110 96 15.1 107 2.7 327 274 19.3
(% of Sales) 5.4 4.6 4.7 5.1 4.6
Purchase of traded goods 71 63 12.3 67 6.3 202 185 8.9
(% of Sales) 3.5 3.0 2.9 3.1 3.1
Other Expenses 277 228 21.3 247 11.8 776 642 20.8
(% of Sales) 13.6 10.9 10.8 12.0 10.9
OPM (%) 10.1 8.1 9.9 10.1 7.7
Interest 67 64 5.1 69 (3.8) 198 175 13.4
Depreciation 55 47 16.7 55 - 164 134 23.1
Other Income 19 1 1,388.2 8 126.2 33 8 310.9
Extr. Income/(Expense) - - - - - - - -
(% of Sales) 5.0 2.9 4.8 5.0 2.6
Provision for Taxation 29 17 67.0 35 (17.1) 98 43 128.3
(% of PBT) 28.0 28.8 31.5 30.4 28.2
Adj. PATM 3.6 2.0 3.3 3.5 1.8
Equity capital (cr) 50.4 50.4 50.4 50.4 50.4
Source: Company, Angel Research
On a standalone basis, APTY
posted a 2.7% yoy (10.8% qoq) decline in the top-line to `2,036cr, which was
lower than our expectations of `2,328cr. The top-line performance was mainly
impacted due to the slowdown in the OEM demand for MHCV tyres which led to a
~3% yoy (~11% qoq) decline in standalone volumes. Nonetheless, the company
witnessed a healthy demand in the replacement segment. The net average
realization remained flat on a yoy as well as qoq basis led by better product-mix.
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Apollo Tyres | 3QFY2013 Result Update
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Exhibit 10:Top-line down due to slowdown in demand
Source: Company, Angel Research
On a sequential basis, APTYs EBITDA
margin improved by a modest ~20bp to 10.1% despite the decline in
raw-material expenses, owing to the sharp increase in other expenditure. The other
expenditure as a percentage of sales jumped by 280bp sequentially as the
company increased its advertisement expenses in an attempt to enhance the brand
visibility. However, raw-material expenditure registered a decline of 16% qoq
primarily due to decline in natural rubber prices. On a yoy basis though, margins
expanded 200bp driven largely by easing of natural rubber prices.
Exhibit 11:Average raw-material cost trendNatural rubber 190 250 (24.0) 210 (9.5)
Nylon tyre cord fabric 235 223 5.4 250 (6.0)
Carbon black 80 73 9.6 80 0.0
Source: Company, Angel Research
For 3QFY2013, the standalone net profit declined
marginally by 1.8% qoq to `74cr largely due to the fall in the top-line. Higher
other income (at `19cr vs `8cr in 2QFY2013) also benefited the profitability during
the quarter. On a yoy basis, net profit witnessed a strong growth of 73.4% driven
by a strong operating performance.
1,432
1,762 1,961 1,845
2,0932,259
2,1522,283
2,036
8.2
34.274.9 56.9
46.2
28.2
9.8
23.7
(2.7)
(10.0)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0
500
1,000
1,500
2,000
2,500
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%)(`cr) Net sales yoy change (RHS)
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Exhibit 12:EBITDA margin at 10.1%
Source: Company, Angel Research
Exhibit 13:Net profit declines sequentially
Source: Company, Angel Research
Conference call Key highlights
According to the Management, the demand outlook remains weak across thethree geographies. The domestic demand continues to remain weak due to
the sharp decline in OEM truck sales. However double digit growth in the
replacement market has supported growth. Further, the demand in Europe is
also expected to remain sluggish in the near term. Industry volumes in Europe
have posted a 13% yoy decline in CY2012. APTY has indicated that it will
continue with production cuts across all its plants given the poor demand.
The company has indicated that the capacity utilization level remains in therange of 70-80% across the three geographies.
The Management expects raw-material prices to remain stable in the nearterm led by slowdown in demand in the global markets.
At the Chennai plant, the company has ramped up capacity to ~400TPD;however, due to weak demand the Chennai plant is currently operating at a
capacity of ~300TPD.
The company has deferred the QIP issue of US$150mn until announcement of4QFY2013 results due to the pricing issue. APTY intends to raise money
primarily to fund its capacity expansion plans.
The Management stated that product prices have not been reduced despite thedecline in raw-material prices.
The European operations during the quarter were impacted due to late onsetof the winter season and also due to higher dealer inventory. The company
intends to increase the capacity at the Netherlands plant by 20% over the next
two years by incurring an expenditure of ~EUR50mn.
The consolidated net debt came down from `2,900cr to `2,700cr currently. Regarding the new plant in Thailand for passenger car tyres, the company is
close to finishing the due diligence exercise with respect to land acquisition. It
is planning to set up an initial capacity of 16,000 tyres/day at an investment of
US$250mn. The plant is likely to commence production by end of CY2014.
10.4 7.6 7.6 7.3 8.1 9.5 10.3 9.9 10.1
69.375.3 77.0 77.0 76.5 75.5 72.9 74.6 70.9
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%) EBITDA margin Raw material cost/sales
54 66 44 22 43 72 75 75 74
3.8 3.8
2.3
1.2
2.0
3.2
3.53.3
3.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
0
10
20
30
40
50
60
70
80
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%)(`cr) Net profit Net profit margin (RHS)
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Apollo Tyres | 3QFY2013 Result Update
February 6, 2013 8
Investment arguments
Currently, manufacturing radial tyres isfar more capital intensive than manufacturing cross-ply tyres. The investment
required for radial tyres per tpd is 3.2x that of cross-ply tyres at `6.1cr/tpd.
On the other hand, the selling price of radial tyres is ~20% higher than that of
cross-ply tyres. Thus, to generate a similar RoCE and RoE, tyre companies
would need to earn EBITDA margin of ~21% compared to ~9% earned on
cross-ply tyres, considering the difference in capital requirements and the
consequent impact on asset turnover, interest cost and depreciation.
Therefore, higher capital requirements will help protect margins from
upward-bound input costs, as the business model evolves, bearing in mind
final RoEs rather than margins. With the sector set for a structural shift and the
apparent pricing flexibility, RoCE and RoE of tyre manufacturers are expected
to improve going forward.
The Indian tyre industry is currentlywitnessing a slowdown in demand from the replacement as well as OEM
markets, primarily due to macro-economic concerns. However the demand
scenario in the long term remains encouraging which will aid APTY to operate
at optimal capacities.
Acquisitionsdone by the company in the past two-three years are increasingly contributing
to its revenue. We estimate Vredestein Banden combined with Dunlop SA to
contribute close to ~35% to the companys overall consolidated revenue,helping it to further strengthen its foothold in the Indian tyre industry.
Acquisitions offer synergies by way of access to radial tyre technology, wider
product portfolio and presence in newer geographies.
We lower our volume estimates for FY2013/14 to account for the subdued
demand scenario in the key geographies of India and Europe. Nonetheless, our
earnings estimates for FY2013 are revised upwards as we factor in the higher
other income during the quarter.
Exhibit 14:Change in estimates
OPM (%) 11.2 11.2 11.5 11.8 30 bp 55 bp
Source: Company, Angel Research
We remain positive on the tyre industry in view of the structural shift that the
industry is witnessing and also due to the softening of natural rubber prices.However, we remain watchful of the capital expenditure plans of the company in
the absence of proper clarity on the quantum and usage of funds. Further, raising
of funds through QIP and issue of warrants to promoters is also likely to remain an
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Apollo Tyres | 3QFY2013 Result Update
February 6, 2013 9
overhang on the stock as it will result in equity dilution of ~20%. Nevertheless, at
`85, the stock is trading at an attractive valuation of 5.9x FY2014E.
A sharp rise in input costs from current levels,
slower growth in international business and lower-than-anticipated domestic
replacement demand pose downside risks to our estimates.
Exhibit 15:Angel vs consensus forecast
EPS (`) 13.0 14.5 12.1 13.9 8.0 4.0
Source: Company, Angel Research
Exhibit 16:One-year forward P/E band
Source: Company, Angel Research
Exhibit 17:One-year forward P/E chart
Source: Company, Angel Research
Exhibit 18:One-year forward EV/EBITDA band
Source: Company, Angel Research
Exhibit 19:One-year forward EV/EBITDA chart
Source: Company, Angel Research
0
20
40
60
80
100
120
140
160
180
Apr-
03
Fe
b-04
Jan-05
Dec-05
Oct-06
Sep-07
Aug-08
Jun-09
May-10
Apr-
11
Fe
b-12
Jan-13
(`) Share Price (`) 2x 5x 8x 11x
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Ju
l-05
Dec-05
May-06
Oct-06
Mar-
07
Aug-07
Jan-08
Jun-08
Nov-08
Apr-
09
Sep-09
Fe
b-10
Ju
l-10
Dec-10
May-11
Oct-11
Mar-
12
Aug-12
Jan-13
(x) One-yr forward P/E Five-yr average P/E
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Apr-
03
Jan-0
4
Oct-04
Ju
l-05
Apr-
06
Jan-0
7
Oct-07
Ju
l-08
Apr-
09
Jan-1
0
Oct-10
Ju
l-11
Apr-
12
Jan-1
3
(`cr) EV (`cr) 2.0 4.0 6.0 8.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Ju
l-05
Apr-
06
Dec-0
6
Aug-0
7
Apr-
08
Dec-0
8
Aug-0
9
Apr-
10
Jan-1
1
Sep-1
1
May-1
2
Jan-1
3
(x) One-yr forward EV/EBITDA Five-yr average EV/EBITDA
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Apollo Tyres | 3QFY2013 Result Update
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Exhibit 20:Auto Ancillary Recommendation summary
Ceat Buy 103 163 58.2 3.8 2.5 3.3 2.8 13.2 17.2 279.5
JKI* Buy 114 165 44.3 3.1 2.8 5.2 4.2 18.8 17.8 -
Source: Company, Angel Research; Note: *Consolidated
Company background
Apollo Tyres (APTY) is India's second largest tyre manufacturer with an overall tyre
market share of ~18%. The company has a leadership position in the heavy and
light commercial vehicle tyre segments, with a 23% and 26% market share
respectively. APTY acquired Dunlop's South African operations in 2006 and
Vredestein Branden BV (Netherlands) in May 2009. These acquisitions now
account for ~35% of APTY's consolidated revenue. The company has eight
manufacturing plants located across India (1,125TPD), South Africa (175TPD) and
Europe (170TPD), with a total installed capacity of 1,470TPD. APTY's main brands
include Apollo (India); Dunlop (South Africa); and Maloya, Regal and Vredestein
(Europe).
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Apollo Tyres | 3QFY2013 Result Update
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Profit and loss statement (Consolidated)
% chg 6.4 62.6 9.2 37.1 7.5 11.0
Net raw material costs 3,411 4,581 5,322 8,037 8,297 9,173
Other mfg costs 337 539 629 746 823 914
Employee expenses 415 1,088 1,134 1,335 1,450 1,624
Other 410 727 810 889 993 1,088
% chg (29.3) 180.7 (18.0) 17.9 31.1 13.4
(% of total op. income) 8.5 14.6 11.0 9.4 11.5 11.8
Depreciation & amortization 129 254 272 326 375 391
% chg (37.2) 216.9 (24.8) 17.2 37.5 16.4
(% of total op. income) 5.9 11.5 7.9 6.8 8.6 9.1
Interest and other charges 112 134 204 297 319 348
Other income 31 177 62 32 75 50
% chg (47.5) 357.3 (42.6) (0.5) 59.1 14.9
Extraordinary items (1) 59 11 (1) - -
Tax 74 261 106 144 225 284
(% of PBT) 34.8 28.5 19.4 25.9 25.5 28.0
PAT (reported)
Minority interest 0 0 1 2 2 2
% chg (48.1) 325.3 (27.8) (4.3) 59.8 11.0
(% of total op. income) 2.8 7.3 4.8 3.4 5.0 5.0
% chg (49.7) 325.3 (27.8) (4.3) 59.8 11.0
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Apollo Tyres | 3QFY2013 Result Update
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Balance sheet statement (Consolidated)
Equity share capital 50 50 50 50 50 50Reserves & surplus 1,299 1,917 2,362 2,782 3,379 4,048
Minority Interest - - 1 1 1 1
Total loans 891 1,707 2,222 2,550 2,750 3,000
Deferred tax liability 194 251 316 403 403 403
Other long term liabilities 21 45 45 45
Long term provisions 107 94 94 94
Gross block 2,284 5,563 6,895 8,034 8,515 9,091
Less: Acc. depreciation 882 3,120 3,501 4,011 4,385 4,776
Capital work-in-progress 281 536 358 331 350 374
Goodwill 24 118 125 134 134 134
Long term loans and advances - - 264 221 221 221
Other noncurrent assets - - - - - -
1,423 2,439 3,154 3,667 4,388 5,239
Cash 362 349 191 173 490 776
Loans & advances 206 310 258 349 457 508
Other 855 1,780 2,705 3,145 3,441 3,955
Current liabilities 700 1,614 2,227 2,467 2,516 2,657
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Cash flow statement (Consolidated)
Profit before tax 213 973 558 556 884 1,015
Depreciation 129 254 272 326 375 391Change in working capital 32 (115) (261) (291) (390) (457)
Others 212 637 16 345 - -
Other income (31) (177) (62) (32) (75) (50)
Direct taxes paid (74) (261) (106) (144) (225) (284)
(Inc.)/Dec. in fixed assets (517) (3,627) (1,161) (1,121) (500) (600)
(Inc.)/Dec. in investments 0 (1) (5) (5) - -
Other income 31 177 62 32 75 50
Issue of equity 46 - - - - -
Inc./(Dec.) in loans 245 816 515 328 200 250
Dividend paid (Incl. Tax) 27 44 29 29 29 29
Others (234) 1,266 (14) (59) - -
Inc./(Dec.) in cash 77 (13) (158) (18) 317 286
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Key ratios
P/E (on FDEPS) 30.7 6.5 9.7 10.4 6.5 5.9P/CEPS 16.0 5.0 6.1 5.8 4.1 3.8
P/BV 3.2 2.2 1.8 1.5 1.2 1.0
Dividend yield (%) 0.5 0.9 0.6 0.6 0.6 0.6
EV/Sales 1.0 0.7 0.7 0.5 0.5 0.4
EV/EBITDA 11.4 4.8 6.5 5.8 4.3 3.8
EV / Total Assets 2.0 1.4 1.2 1.1 1.0 0.8
EPS (Basic) 2.8 13.0 8.7 8.1 13.0 14.5
EPS (fully diluted) 2.8 11.8 8.5 8.1 13.0 14.5
Cash EPS 5.3 16.8 13.9 14.6 20.4 22.2
DPS 0.4 0.7 0.5 0.5 0.5 0.5
Book Value 26.8 39.0 47.9 56.2 68.0 81.3
EBIT margin 5.9 11.5 7.9 6.8 8.6 9.1
Tax retention ratio 0.7 0.7 0.8 0.7 0.7 0.7
Asset turnover (x) 2.6 2.9 2.1 2.3 2.2 2.2
ROIC (Post-tax) 10.1 23.6 13.3 11.4 14.0 14.4
Cost of Debt (Post Tax) 9.5 7.4 8.4 9.2 9.0 8.7
Leverage (x) 0.3 0.6 0.8 0.8 0.7 0.6
Operating ROE 10.3 32.7 17.1 13.3 17.7 17.8
ROCE (Pre-tax) 13.2 29.3 15.6 14.9 17.8 18.3
Angel ROIC (Pre-tax) 14.2 26.0 14.3 14.3 18.1 19.1
ROE 11.0 35.8 19.6 15.7 21.0 19.4
Asset Turnover (Gross Block) 2.4 2.1 1.4 1.6 1.6 1.8
Inventory / Sales (days) 49 36 57 56 63 66
Receivables (days) 20 23 36 31 33 33
Payables (days) 47 41 65 59 58 55
WC cycle (ex-cash) (days) 28 19 25 26 34 40
Net debt to equity 0.4 0.7 0.8 0.8 0.7 0.5
Net debt to EBITDA 1.2 1.1 2.1 2.1 1.5 1.3
Interest Coverage (EBIT / Int.) 2.6 6.9 3.4 2.8 3.5 3.8
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Disclosure of Interest Statement Apollo Tyres
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
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