Apollo Tyres Reports Negative Performance in Q3 2024, But Shows Strong Revenue Generation and Areas for Improvement

Apollo Tyres, a leading player in the tyre and allied industry, recently announced its financial results for the quarter ending September 2024. The company has seen a negative performance in this quarter, with a score of -16 compared to -9 in the previous quarter.

However, there are some positive aspects to the financials as well. Apollo Tyres has recorded the highest operating cash flow of Rs 3,439.52 crore in the last three years, indicating a strong revenue generation from its business operations.

On the other hand, there are some areas that need improvement. The profit before tax (PBT) less other income has fallen by 34.7% compared to the average of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has fallen by 29.0% compared to the average of the previous four quarters. This indicates a negative trend in the near term for the company's profitability.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The operating profit margin has also been on a decline in the last five quarters, indicating a decrease in efficiency.

In terms of operating profit, Apollo Tyres has recorded the lowest figure of Rs 877.88 crore in the last five quarters. The same trend can be seen in the PBT, which has also been the lowest in the last five quarters. This shows a negative trend in the near term for the company's operating profit.

The earnings per share (EPS) have also been on a decline, with the lowest figure of Rs 4.68 in the last five quarters. This indicates a decrease in profitability and lower earnings for shareholders.

Moreover, the dividend payout ratio (DPR) has been the lowest in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Apollo Tyres has seen a negative financial performance in the quarter ending September 2024. While there are some positive aspects, there are also areas that need improvement. Investors should carefully consider these factors before making any investment decisions.