Apol Lo Tyres Result Updated

8/3/2019 Apol Lo Tyres Result Updated

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Please refer to important disclosures at the end of this report 1

Y/E March - Consolidated (` cr) 2QFY12 2QFY11 % chg (yoy) Angel est. % diff.Net sales 2,871 1,949 47.3 2,809 2.2EBITDA 230 185 24.4 236 (2.3)

EBITDA margin (%) 8.0 9.5 (148)bp 8.4 (37)bp

Reported PAT 78 53 46.0 74 4.6Source: Company, Angel Research

Apollo Tyres (APTY) reported a mixed set of results for 2QFY2012. The companysstandalone operating performance was subdued due to adverse product mix,sluggish demand and continued raw-material cost pressures, while its Europeanoperations posted strong performance led by robust demand for winter tyresahead of the peak season. We broadly retain our revenue and earnings estimatesfor the company. We continue to maintain our Buy rating on the stock.Consolidated sales up 47.3% yoy, net profit jumps 46% yoy: Consolidated netsales posted 47.3% yoy (1.7% qoq) growth to `2,871cr, driven by a 31.9% yoy(down 4% qoq) jump in volumes and 11.7% yoy (6% qoq) growth in net averagerealization. Europe and South Africa operations registered strong revenue growthof 42.8% and 14.8% yoy, respectively, during the quarter. The companysoperating margin contracted by 148bp yoy (49bp qoq) to 8%, largely due toweak operating performance on the standalone front. However, net profit grew by46% yoy (flat qoq) to `78cr on account of a significant increase in other income.

Weak performance at the standalone level: While standalone net sales grewstrongly by 56.9% yoy to `1,845cr, driven by 37% yoy volume growth on a lowbase of 2QFY2011 (lockout at Cochin plant), the company posted a 5.9% qoq

decline in due to ~10% qoq dip in volumes led by weak replacement demand.OPM for the quarter declined considerably by 356bp yoy (122bp qoq) to 6.8%due to unfavorable product mix (OEM 34% of sales in 2QFY2012 vs. 31% in1QFY2012 and 25% in 2QFY2011) and continued pressures on the raw-materialfront raw-material/sales ratio at 77.8% vs. 67.1% in 2QFY2011). Thus, netprofit declined sharply by 40.9% yoy (50.3% qoq) to `22cr. Lower tax ratearrested the further decline in net profit during 2QFY2012.

Outlook and valuation: We remain positive on the tyre industry in view of thestructural shift that the industry is going through. We expect the company todeliver a strong revenue CAGR of 22.5% over FY201113E, as productionramp-up at the Chennai facility continues as per schedule. We expect thecompanys operating margin to improve in FY2013 on gradual softening ofraw-material prices. At `61, APTY is trading at attractive levels of 6.6x FY2013

earnings. We continue to maintain our Buy recommendation on the stock with atarget price of `74, valuing it at 8.0x FY2013E earnings.Key financials (Consolidated)Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales 8,121 8,868 11,819 13,296% chg 62.6 9.2 33.3 12.5

Net profit 653 441 363 468% chg 369.5 (32.5) (17.6) 28.8

EBITDA margin (%) 14.6 11.1 8.9 9.4

EPS (`) 13.0 8.7 7.2 9.3P/E (x) 4.7 7.0 8.5 6.6

P/BV (x) 1.6 1.3 1.1 1.0

RoE (%) 29.8 17.0 12.2 14.8

RoCE (%) 29.3 15.7 13.1 14.4

EV/Sales (x) 0.5 0.6 0.5 0.4

EV/EBITDA (x) 3.7 5.4 5.2 4.3

Source: Company, Angel Research

BUYCMP `61

Target Price `74

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 45.1

MF / Banks / Indian Fls 19.0

FII / NRIs / OCBs 25.2

Indian Public / Others 10.7

Abs. (%) 3m 1yr 3yr

Sensex 0.8 (16.5) 74.7

Apollo Tyres (9.2) (13.2) 132.6

APTY@IN

Face Value (`)

BSE Sensex

Nifty

Reuters Code

Tyre

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

17,193

5,169

APLO.BO

3,077

1.3

83/44

578,755

1

Yaresh Kothari022-3935 7800 Ext: [email protected]

Apollo TyresPerformance Highlights

2QFY2012 Result Update | Tyre

November 11, 2011


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Apollo Tyres | 2QFY2012 Result Update

2November 11, 2011

Exhibit 1:Quarterly performance (Standalone)

Y/E March (` cr) 2QFY12 2QFY11 % chg 1HFY12 1HFY11 %chgNet sales 1,845 1,176 56.9 3,806 2,297 65.7Consumption of RM 1,381 756 82.6 2,815 1,494 88.5(% of sales) 74.8 64.3 74.0 65.0

Staff costs 87 77 12.8 178 154 15.6

(% of sales) 4.7 6.5 4.7 6.7

Purchases of TG 55 33 68.9 122 59 106.0

(% of sales) 3.0 2.8 3.2 2.6

Other expenses 197 189 4.6 408 351 16.1

(% of sales) 10.7 16.0 10.7 15.3

Total expenditure 1,720 1,054 63.2 3,524 2,059 71.2EBITDA 125 121 2.9 282 238 18.2EBITDA margin (%) 6.8 10.3 7.4 10.4

Interest 52 36 44 105 62 69.2

Depreciation 44 38 17 87 72 20.6

Other Income 1 6 (85.3) 2 6 (66.8)

PBT (excl. extr. Items) 29 53 (45.0) 92 111 (16.8)Exceptional items - - - - - -

PBT (incl. extr. Items) 29 53 (45.0) 92 111 (16.8)(% of sales) 1.6 4.5 2.4 4.8

Provision for taxation 7 16 (54.4) 26 33 (21.9)

(% of PBT) 24.9 30.0 27.9 29.7

Reported PAT 22 37 (40.9) 67 78 (14.7)PATM (%) 1.2 3.2 1.7 3.4

Equity capital (cr) 50.4 50.4 50.4 50.4

EPS (`) 0.4 0.7 (40.9) 1.3 1.5 (14.7)Source: Company, Angel Research

Net sales up 56.9% yoy on a 37% yoy increase in volumes: On a standalone basis,APTY registered strong top-line growth of 56.9% yoy to `1,845cr, backed by a

robust ~37% yoy increase in volumes and a ~20% increase in average net

realization. Standalone volumes grew on a low base of 2QFY2011, as production

was impacted by the lockout at Chennai facility. Sequentially, standalone volumes

declined by ~10% due to sluggish demand for truck tyres in the replacementmarket, leading to a 5.9% dip in revenue. Product mix during the quarter shifted in

favor of the OEM segment due to higher contribution of passenger car radial (PCR)

and truck and bus radial (TBR) tyres. The replacement segment contributed 55%

(69%) to the companys top line, while contribution of OEM and exports stood at

34% (25%) and 11% (6%), respectively, during the quarter.


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3November 11, 2011

Exhibit 2:Standalone net sales up 56.9% yoy on 37% volume growth

Source: Company, Angel Research; Note: Standalone performance

Operating margin at 6.8%, down 356bp yoy: On the operating front, APTYreported a substantial 356bp yoy (122bp qoq) contraction in its operating margin

to 6.8%. The margin decline was largely due to unfavorable product mix and

raw-material cost pressures. Product mix during the quarter shifted in favor of

OEMs 34% of sales in 2QFY2012 vs. 31% in 1QFY2012 and 25% in 2QFY2011

due to higher contribution of PCR and TBR tyres.

While average rubber cost declined by 4.1% sequentially, cost of other raw

materials such as NTC and carbon black moved up slightly due to depreciation of

the INR. As a result, raw material to net sales ratio stood at 77.8%, witnessing anincrease of 1,075bp yoy and 120bp qoq, during the quarter.

Exhibit 3:Average raw-material cost trend

Particulars 2QFY12 2QFY11 %chg (yoy) 1QFY12 %chg (qoq)Nylon Tyre CordFabric

250 215 16.3 245 2.0

Natural Rubber 235 175 34.3 245 (4.1)

Carbon Black 70 55 27.3 65 7.7


24.3

46.5

18.2

(5.0)(3.7) 8.2

34.2

74.9

56.9

(20)

(10)

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3QFY11

4QFY11

1QFY12

2QFY12

(%)(`cr) Net sales yoy change (RHS)


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4November 11, 2011

xhibit 4:Continuous rise in natural rubber prices...

Source: Company, Crisil Research, Angel Research

Exhibit 5:...leads to EBITDA margin contraction


Standalone net profit down by 40.9% yoy: Standalone net profit registered a steepdecline of 40.9% yoy (50.3% qoq) to `22cr in 2QFY2012. The decline in

profitability was largely due to margin contraction at the operating level. Higher

interest cost (up 44% yoy) due to increased working capital needs negatively

affected the companys bottom line. However, lower tax outgo benefitted the

bottom line to a certain extent.

Exhibit 6:Net profit dips on margin contraction


102118

141

165177 194

225 229211

0

50

100

150

200

250

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(`/kg)

16.4 15.5 14.110.4 10.3 10.4 8.3 8.0 6.8

60.1 64.7 67.8 68.2 67.1 69.3

74.3 76.677.8

0

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(%) EBITDA margin Raw material cost/sales

8.4 7.7

8.8

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3.83.8

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(%)(`cr) Net profit Net profit margin (RHS)


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5November 11, 2011

Exhibit 7:Quarterly performance (Consolidated)

Y/E March (` cr) 2QFY12 2QFY11 % chg 1HFY12 1HFY11 %chgNet sales 2,871 1,949 47.3 5,694 3,770 51.0Consumption of RM 1,792 1,035 73.2 3,477 1,974 76.1(% of sales) 62.4 53.1 61.1 52.4

Staff costs 330 301 9.5 682 592 15.1

(% of sales) 11.5 15.5 12.0 15.7

Purchases of TG 147 113 30.6 318 196 62.7

(% of sales) 5.1 5.8 5.6 5.2

Other expenses 371 315 18.0 746 623 19.7

(% of Sales) 12.9 16.1 13.1 16.5

Total expenditure 2,641 1,764 49.7 5,223 3,386 54.3EBITDA 230 185 24.4 471 384 22.7EBITDA margin (%) 8.0 9.5 8.3 10.2

Interest 65 44 47.9 127 78 63.2

Depreciation 78 67 16.1 153 131 17.1

Other Income 12 0 2,814 14 4 255.0

PBT (excl. extr. items) 99 75 33.1 204 179 14.1Exceptional Items - - - - - -

PBT (incl. extr. items) 99 75 33.1 204 179 14.1(% of sales) 3.5 3.8 3.6 4.7

Provision for taxation 21.1 21 (0.9) 48 51 (5.8)

(% of PBT) 21.2 28.5 23.7 28.7

Share in loss/(profit) of associates 0 0 1 0

Minority interest (0) 0 (0) 0

Reported PAT 78 53 46.0 155 127 21.5PATM (%) 2.7 2.7 2.7 3.4

Equity capital 50.4 50.4 50.4 50.4

Reported EPS (`) 1.5 1.1 46.0 3.1 2.5 21.5Source: Company, Angel Research

Consolidated performance: APTY registered 47.3% yoy (1.7% qoq) growth in itsconsolidated net revenue to `2,871cr. Top-line growth was aided by 31.9% yoy

(down 4% qoq) growth in volumes to 120,000MT and 11.7% yoy (6% qoq) growth

in average net realization. Europe and South Africa operations registered strong

revenue growth of 42.8% and 14.8% yoy, respectively, during the quarter.

The companys operating margin declined by 148bp yoy (49bp qoq) to 8%, mainly

due to weak operating performance at the standalone level. While average rubber

cost declined by 4.1% sequentially, cost of other raw materials such as NTC and

carbon black moved up slightly due to depreciation of the INR. As a result,

consolidated raw material to net sales ratio stood at 67.5%, witnessing an increase

of 860bp yoy and 180bp qoq during the quarter.

EBIT margin at the European subsidiary expanded by 240bp yoy (85bp qoq) to

10.6%, aided by price hikes undertaken in June 2011. As a result, net profit grew

by 46% yoy to `78cr. However, on a sequential basis, net profit stood flat.

A significant increase in other income and lower tax rate benefited the company's

bottom-line performance during the quarter.


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6November 11, 2011

Exhibit 8:Segmental performance

2QFY12 2QFY11 % chg 1HFY12 1HFY11 % chgRevenue (` cr)India 1,845 1,176 56.9 3,806 2,297 65.7South Africa 302 263 14.8 582 530 9.9

Europe 749 525 42.8 1,353 962 40.6

Others 38 - - 38 - -

EBIT (` cr)India 81.6 89.6 (8.9) 197 173 14.0

South Africa 2.6 (7.5) - (2) (0) -

Europe 79.5 43.2 83.9 138 94 46.6

Others (0.3) (0.3) - (0) (0) -

EBIT margin (%)India 4.4 7.6 5.2 7.5

SA 0.9 (2.9) (0.4) (0.1)

Europe 10.6 8.2 10.2 9.8


Conference call Key highlights

Raw-material costs and pricing action: Management expects softening ofrubber prices to boost margins going ahead. However, unfavorable currency

movement is likely to negate the impact of softening raw-material prices. APTY

increased prices by ~2.5% in the domestic TBR segment in August 2011,

~10% in exports in September 2011 and ~1.5% in the OEM segment in

October 2011.

Current capacity details: The companys capacity in India, South Africa andEurope stands at 1,150MT/day, 175MT/day and 170MT/day, respectively.

Ramp-up at the Chennai facility is progressing as per schedule, with current

production at 250MT/day, and is expected to reach 400MT/day by the end of

FY2012 and 450MT/day by 1QFY2013.

For FY2012, APTY plans to incur capex of ~`150cr at the Chennai facility. ForFY2013, maintenance capex of `150cr200cr has been planned.

On a consolidated basis, APTYs net debt stood at `3,200cr as of September

30, 2011.


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7November 11, 2011

Investment arguments

Tyre industry set for a structural shift: Currently, manufacturing radial tyres isfar more capital intensive than manufacturing cross-ply tyres. 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 similar RoCE and RoE, tyre companies would

need to earn EBITDA margins of ~21% compared to ~9% earned on

cross-ply tyres, considering the difference in the capital requirements and

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.

Riding on high domestic demand: The Indian tyre industry is witnessing strongdemand from the replacement as well as OEM markets, keeping capacities

running at peak. Apollo is poised to achieve market leadership on the back of

increasing production from 820tpd in FY2010 to ~1,300tpd in FY2012E.

Strategic overseas investment offers synergies in the long term: Acquisitionsdone by the company in the last 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.

Outlook and valuation

We remain positive on the tyre industry in view of the structural shift that the

industry is going through. We expect the company to deliver strong revenue CAGR

of 22.5% over FY201113E, as production ramp-up at the Chennai facility

continues as per schedule. We expect the companys operating margin to improve

in FY2013 on gradual softening of raw-material prices. At `61, APTY is trading at

attractive levels of 6.6x FY2013 earnings. We maintain our Buy view on the stockwith a target price of `74, valuing it at 8.0x FY2013E earnings.Key downside risks to our call: 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.


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8November 11, 2011

Exhibit 9: Angel vs. consensus forecastAngel estimates Consensus Variation (%)

FY12E FY13E FY12E FY13E FY12E FY13ENet sales (` cr) 11,819 13,296 11,472 12,941 3.0 2.7EPS (`) 7.2 9.3 8.1 10.4 (10.7) (10.6)

ource: Bloomberg, Angel Research

Exhibit 10: One-year forward P/E band

Source: Company, Bloomberg, Angel Research

Exhibit 11: One-year forward P/E chart


Exhibit 12: One-year forward EV/EBITDA band


Exhibit 13: One-year forward EV/EBITDA chart


Exhibit 14: Tyre - Recommendation summary

Company Reco. CMP(`) Tgt. price(`) Upside(%)P/E (x) EV/EBITDA (x) RoE (%) FY11-13E EPS

FY12E FY13E FY12E FY13E FY12E FY13E CAGR (%)Apollo Tyres* Buy 61 74 21.6 8.5 6.6 5.2 4.3 12.2 14.8 3.0Ceat Buy 76 104 37.4 19.8 3.6 8.3 5.7 2.0 10.9 60.9

JK Tyre* Buy 75 99 33.4 7.9 3.4 6.9 5.6 4.5 10.0 17.4

Source: Company, Angel Research; Note: *Consolidated

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(`cr) EV (`cr) 2.0 4.0 6.0 8.0

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(x) One-yr forward EV/EBITDA Five-yr average EV/EBITDA


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9November 11, 2011

Profit and Loss Statement (Consolidated)

Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13ENet Sales 4,695 4,995 8,121 8,868 11,819 13,296

Total operating income 4,695 4,995 8,121 8,868 11,819 13,296% chg 9.4 6.4 62.6 9.2 33.3 12.5

Total Expenditure 4,098 4,573 6,936 7,880 10,773 12,049Net Raw Materials 2,929 3,411 4,581 5,302 7,357 8,221

Other Mfg costs 338 337 539 638 839 917

Personnel 440 415 1,088 1,155 1,536 1,734

Other 390 410 727 784 1,040 1,177

EBITDA 597 422 1,185 988 1,046 1,248% chg 49.5 (29.3) 180.7 (16.6) 5.9 19.3

(% of Net Sales) 12.7 8.5 14.6 11.1 8.9 9.4

Depreciation & Amortisation 130 129 254 272 305 346

EBIT 467 294 931 716 741 901% chg 65.6 (37.2) 216.9 (23.1) 3.5 21.6

(% of Net Sales) 10.0 5.9 11.5 8.1 6.3 6.8

Interest & other charges 89 112 134 198 273 264

Other Income 26 31 117 29 29 31

(% of PBT) 6.5 14.7 13.7 5.4 5.9 4.6

Recurring PBT 405 213 914 547 498 668% chg 106.4 (47.3) 328.3 (40.1) (9.1) 34.3

Extraordinary Items (0) (1) 59 11 0 0

PBT 406 214 855 536 498 668Tax 136 74 261 106 134 200

(% of PBT) 33.4 34.7 30.5 19.8 27.0 30.0

PAT 270 140 594 430 363 468Adj. PAT 270 139 653 441 363 468% chg 130.4 (48.4) 369.5 (32.5) (17.6) 28.8

(% of Net Sales) 5.7 2.8 8.0 5.0 3.1 3.5

Basic EPS (`) 5.5 2.8 13.0 8.7 7.2 9.3Fully Diluted EPS ( ) 5.5 2.8 13.0 8.7 7.2 9.3% chg 118.9 (50.0) 369.5 (32.5) (17.6) 28.8


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10November 11, 2011

Balance Sheet (Consolidated)

Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13ESOURCES OF FUNDSEquity Share Capital 49 50 50 50 50 50Reserves & Surplus 1,134 1,299 1,917 2,362 2,725 3,104

Shareholders Funds 1,182 1,350 1,968 2,413 2,776 3,155Minority Interest - - - 1 1 1

Total Loans 646 891 1,707 2,480 3,030 2,930

Deferred Tax Liability 176 194 251 316 316 316

Total Liabilities 2,004 2,435 3,926 5,210 6,123 6,402APPLICATION OF FUNDSGross Block 1,955 2,284 5,563 6,903 7,625 7,962

Less: Acc. Depreciation 750 882 3,120 3,501 3,806 4,152

Net Block 1,205 1,402 2,443 3,403 3,819 3,810Capital Work-in-Progress 95 281 536 503 534 557

Goodwill 22 24 118 117 117 117

Investments 5 5 6 11 17 21Current Assets 1,484 1,423 2,439 3,290 4,229 4,707

Cash 285 362 349 191 640 668

Loans & Advances 171 206 310 395 532 598

Other 1,028 855 1,780 2,704 3,058 3,440

Current liabilities 807 700 1,614 2,113 2,593 2,809

Net Current Assets 677 723 824 1,177 1,636 1,897Mis. Exp. not written off - - - - - -

Total Assets 2,004 2,435 3,926 5,210 6,123 6,402


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11November 11, 2011

Cash Flow Statement (Consolidated)

Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13EProfit before tax 406 214 855 536 498 668

Depreciation 130 129 254 272 305 346Change in Working Capital 108 (72) 97 415 (83) 260

Less: Other income 92 (311) (479) 647 (252) 295

Direct taxes paid 136 74 261 106 134 200

Cash Flow from Operations 417 508 1,424 470 837 779(Inc.)/Dec. in Fixed Assets (18) (517) (3,533) (1,307) (753) (360)

(Inc.)/Dec. in Investments - - (1) (5) (6) (4)

(Inc.)/Dec. in loans and adv. 18 (28) (111) (53) 137 67

Other income 26 31 117 29 29 31

Cash Flow from Investing 27 (513) (3,528) (1,337) (592) (267)Issue of Equity 72 46 - - - -

Inc./(Dec.) in loans (177) 245 816 773 550 (100)

Dividend Paid (Incl. Tax) 29 27 44 29 44 88

Others (276) (234) 1,231 (93) (390) (471)

Cash Flow from Financing (352) 83 2,091 709 204 (483)Inc./(Dec.) in Cash 91 77 (13) (158) 449 29

Opening Cash balance 194 285 362 349 191 640Closing Cash balance 285 362 349 191 640 668


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12November 11, 2011

Key Ratios

Y/E March FY08 FY09 FY10 FY11 FY12E FY13EValuation Ratio (x)P/E (on FDEPS) 11.1 22.1 4.7 7.0 8.5 6.6P/CEPS 7.5 11.5 3.6 4.4 4.6 3.8

P/BV 2.5 2.3 1.6 1.3 1.1 1.0

Dividend yield (%) 0.8 0.7 1.2 0.8 1.2 2.5

EV/Sales 0.7 0.7 0.5 0.6 0.5 0.4

EV/EBITDA 5.6 8.5 3.7 5.4 5.2 4.3

EV / Total Assets 1.7 1.5 1.1 1.0 0.9 0.8

Per Share Data (`)EPS (Basic) 5.5 2.8 13.0 8.7 7.2 9.3

EPS (fully diluted) 5.5 2.8 13.0 8.7 7.2 9.3

Cash EPS 8.2 5.3 16.8 13.9 13.3 16.2

DPS 0.5 0.4 0.7 0.5 0.8 1.5

Book Value 24.2 26.8 39.0 47.9 55.1 62.6

DuPont AnalysisEBIT margin 10.0 5.9 11.5 8.1 6.3 6.8

Tax retention ratio 0.7 0.7 0.7 0.8 0.7 0.7

Asset turnover (x) 2.7 2.6 2.9 2.1 2.3 2.4

RoIC (Post-tax) 18.1 10.1 22.9 13.4 10.3 11.3

Cost of Debt (Post Tax) 8.0 9.5 7.2 7.6 7.2 6.2

Leverage (x) 0.5 0.3 0.6 0.8 0.9 0.8

Operating RoE 22.8 10.3 31.8 18.1 13.1 15.2

Returns (%)RoCE (Pre-tax) 23.8 13.2 29.3 15.7 13.1 14.4

Angel RoIC (Pre-tax) 27.2 14.2 26.0 14.3 13.5 15.7

RoE 21.3 8.4 29.8 17.0 12.2 14.8

Turnover ratios (x) Asset Turnover (Gross Block) 2.4 2.4 2.1 1.4 1.6 1.7

Inventory / Sales (days) 53 49 36 57 58 58

Receivables (days) 26 20 23 36 37 37

Payables (days) 58 47 41 61 59 60

WC cycle (ex-cash) (days) 29 28 19 30 31 31

Solvency ratios (x)Net debt to equity 0.3 0.4 0.7 0.9 0.9 0.7

Net debt to EBITDA 0.6 1.2 1.1 2.3 2.3 1.8

Interest Coverage (EBIT/Interest) 5.3 2.6 6.9 3.6 2.7 3.4


13/13


13N b 11 2011

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

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

Research Team Tel: 022 - 3935 7800 E-mail: [email protected] Website: www.angelbroking.com

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

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risks of such an investment.

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investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

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Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

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Apol Lo Tyres Result Updated