Apollo Tyres Limited

INR 8.4 billion

ther details of our operations for the last quarter. The consolidated EBITDA for the quarter was INR 8.4 billion, a margin of 13% compared to 13.7% in the last quarter, but a much larger fall from 16.4% in the

13%

for the last quarter. The consolidated EBITDA for the quarter was INR 8.4 billion, a margin of 13% compared to 13.7% in the last quarter, but a much larger fall from 16.4% in the same quarter last

13.7%

uarter. The consolidated EBITDA for the quarter was INR 8.4 billion, a margin of 13% compared to 13.7% in the last quarter, but a much larger fall from 16.4% in the same quarter last year. Our margins

16.4%

R 8.4 billion, a margin of 13% compared to 13.7% in the last quarter, but a much larger fall from 16.4% in the same quarter last year. Our margins have come off from the previous year levels largely due

0.8x

nce sheet continues to be very healthy. The net debt to EBITDA for the consolidated operation was 0.8x as of March '25 compared to the end at previous quarter. In India, we witnessed flattish Q4 Y-o-Y

INR 45.8 billion

in exports. We registered good growth in TBR replacement segment. The revenue for the quarter was INR 45.8 billion, a growth of 8.4% over the same quarter last year. The EBITDA for the quarter at I

8.4%

growth in TBR replacement segment. The revenue for the quarter was INR 45.8 billion, a growth of 8.4% over the same quarter last year. The EBITDA for the quarter at INR 5.2 billion, a

INR 5.2 billion

n, a growth of 8.4% over the same quarter last year. The EBITDA for the quarter at INR 5.2 billion, a margin of 11.2% was just a little up compared to 11.1% in the last quarter. We have clearly,

11.2%

same quarter last year. The EBITDA for the quarter at INR 5.2 billion, a margin of 11.2% was just a little up compared to 11.1% in the last quarter. We have clearly, as Neeraj mentioned

11.1%

for the quarter at INR 5.2 billion, a margin of 11.2% was just a little up compared to 11.1% in the last quarter. We have clearly, as Neeraj mentioned, underperformed vis-à-vis our peers in

1.2x

pared to the previous quarter of December '24. The net debt to EBITDA for India operations was at 1.2x as of March '25. Moving on to European Operations, the revenue for the quarter at EUR 176 millio

176 million

was at 1.2x as of March '25. Moving on to European Operations, the revenue for the quarter at EUR 176 million was a decline of 4% over the same period last year. The EBITDA for the quarter stood at EUR 25 mil

“And by when should we expect some of those efforts to sort of start getting visible in the numbers?”

“So some more clarity there will be helpful.”

“hopefully quarter one will be a much, much better performance, even when I compare to our peers.”

“So both these projects will be sort of preparing us for the future.”

“We believe margins will expand definitely and we could, as an example, point you to the restructuring, which was done five years earlier, back in 2020, when the European Operations took a significant uplift in margins because of the manufacturing shift.”

“I remember last quarter, you mentioned FY'26 Capex outlook of INR 2000 crore.”

“And how are you looking at it next to your point of view to reduce this going forward?”

“On the Netherlands business for FY25, would it be possible to share how are the financials, revenue, cost, gross block, anything you can share at this point?”

“And just a last question for the India business, what is your sense on the FY25 market share for PCR and TBR?”

“I can only assure you that Apollo will be back in a full swing in quarter one and FY'26 also.”

Gaurav Kumar

46

Neeraj Kanwar

14

Aniket Mhatre

12

Raghunandan N.L.

11

Basudeb Banerjee

9

Joseph George

5

Siddhartha Bera

4

Amyn Pirani

3

Pramod Amthe

3

Naveen Baid

3

Aniket Mhatre

Thank you, Gaurav sir. We will now open the floor for Q&A session. Anyone who wishes to ask a question can please use the raise hand option. Once you are done asking your question, please lower your hand. We will wait for a couple of seconds for the question queue to assemble. First question is from the line of Siddhartha Bera. I have unmuted your line. You can go ahead and ask your question.

Neeraj Kanwar

Sir, first question is again on the growth outlook. We have been sort of, like you rightly said, been slightly underperforming compared to peers. So some color on what areas, and I believe you have already been taking some steps to sort of improve the growth momentum. So some more color, where are we still lagging? And is it more OE or more on the replacement? Where do you think more efforts needed to be taken? And by when should we expect some of those efforts to sort of start getting visible in the numbers? So some more clarity there will be helpful. Okay, Gaurav, I'll take that. So like I mentioned to you, yes, this year has been very, very challenging. We have underperformed, but the green light is that we have put a lot of initiatives in the field. Our replacement market has been robust. So that is one clarification I want to make. Where we have faltered is in OEMs, where we on purpose have come out of some of the sizes that we didn't want to go into. Thereby volume decline has be

Siddhartha Bera

hopefully quarter one will be a much, much better performance, even when I compare to our peers. I hope I've answered that. Yeah. Just a follow up in that, at least at the OE level, I think what we remember last quarter, we had declined in double digits. So from there, we have come to flat. So probably there's been a bit improvement. So should we build in that now, given this trend, we should start expecting some growth.

Siddhartha Bera

Got it. Second question is on this restructuring, what we are doing there. So some sense, what is the contribution of revenues from the Netherlands plant as of now? And given that, if we close it, what happens to this production there? Because in Hungary, we already have a capacity constraint. And do we plan to ship that to Hungary? And if so, when does the new capacity in Hungary comes on stream? So some sense there.

Gaurav Kumar

Yeah. So Siddharth, currently the Enschede plant was producing 0.5 million PCR tyres when we are selling 6 million plus tyres in Europe. So let's say it's a proportion which is under 10%. That can be absorbed between the existing capacities in India and Hungary. As mentioned, we had to sacrifice the non-UHP category sales in the current year in Europe, which led to both underperformance on revenue and also, to a certain extent, that plays into margins. So, the Hungary capacity would be available by the end of this current year.

Amyn Pirani

Yes. Hi, thanks for the opportunity. Just some clarification again on this European performance in the quarter. So did we already start reducing capacity at Enschede? Because if I look at absolute revenues, it is still lower than last quarter as well as last year. So was there a specific capacity constraint or have we run out of capacity? Because if that were the case, at least we should have had some operating leverage benefits. So if you can just explain that, some more color, that would be helpful.