Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript. The company is focusing on deleveraging, with net debt reduced by about INR 4.5 billion as of December 2024. Interest cost in India has increased temporarily due to working capital borrowings but is expected to come down as debt reduces. Capex planned for FY26 includes maintenance and growth Capex totaling potentially INR 1,200-1,300 crores, with some moderation expected in FY25 capex. Overall, the company is emphasizing profitability, free cash flow generation, and return

Any current/future capex/capital investment/strategic investment?

FY26 Capex guidance: Normal maintenance capex around INR 700-750 crores plus additional growth capex of about INR 800 crores (ballpark figure), possibly totaling around INR 1,500 crores; more firm guidance to be provided later. Capex focus: Increasing capacity, especially for passenger car radial (PCR) tyres; no greenfield expansion planned in Europe, capacity additions through brownfield expansion in Hungary. Capacity addition: Expected to add about 7-8% capacity in India, slightly more in Europe; overall capacity increase around 10%. FY25 Capex: Approximately INR 700-800 crores expected for

Future growth expectations in sales/revenue/volumes?

Expectation of further strong pickup in replacement demand momentum in Q4 and beyond, particularly in India. Volume growth for replacement segment in India was 5% in Q3; OE volumes declined by 10%, exports were flattish. European operations anticipate continued demand recovery, especially in passenger car tyre segment, with focus on outgrowing the market. Growth expected in truck bus radial (TBR) and passenger car radial (PCR) replacement segments in India. Entry into premium segments by upsizing tyres (14-17 inch) aims to improve profitability despite lower volumes. US and Middle Ea

Future growth expectations in earnings/operating earnings/profits/EPS?

The management expects operating performance to improve going forward driven by: - Recovery in overall demand momentum. - Internal initiatives aimed at significantly uplifting profitability. - Reduced raw material inflation levels leading to improved margins. Volume growth is expected to pick up, especially in the domestic replacement segment with signs of further strong pickup in Q4 and beyond. The company is shifting towards higher-margin, premium products (upsizing in truck bus radial and PCR segments) which may lead to better profitability despite possibly lower volumes. EBITDA margi

Apollo Tyres LtdQ4 FY25Auto Components

Apollo Tyres Ltd Q4 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹444P/E: 13.7Market Cap: ₹28.3K CrSector: Auto Components

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Expectation of further strong pickup in replacement demand momentum in Q4 and beyond, particularly in India.
→Volume growth for replacement segment in India was 5% in Q3; OE volumes declined by 10%, exports were flattish.
→European operations anticipate continued demand recovery, especially in passenger car tyre segment, with focus on outgrowing the market.
→Growth expected in truck bus radial (TBR) and passenger car radial (PCR) replacement segments in India.
→Entry into premium segments by upsizing tyres (14-17 inch) aims to improve profitability despite lower volumes.
→US and Middle East identified as key growth markets for exports.
→Overall improvement in quarter-on-quarter revenue growth with signs of gaining ground compared to peers.
→New product launches, premiumization, and market expansion underpin growth strategy.

Margin guidance

Category 3

→The management expects operating performance to improve going forward driven by:
→ - Recovery in overall demand momentum.
→ - Internal initiatives aimed at significantly uplifting profitability.
→ - Reduced raw material inflation levels leading to improved margins.
→Volume growth is expected to pick up, especially in the domestic replacement segment with signs of further strong pickup in Q4 and beyond.
→The company is shifting towards higher-margin, premium products (upsizing in truck bus radial and PCR segments) which may lead to better profitability despite possibly lower volumes.
→EBITDA margins have been maintained despite cost pressures; management aims to sustain or improve these margins with controlled expenses.
→Europe operations show revenue growth with improving product mix contributing to profitability.
→Revenue growth is anticipated from expanding in new markets such as the US and the Middle East.
→Cost rationalization efforts, including administrative expenses, are expected to stabilize or improve margins.
→Overall, profitability trajectory and EPS growth are expected to improve over the next year.

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Fundraise plans

→There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript.
→The company is focusing on deleveraging, with net debt reduced by about INR 4.5 billion as of December 2024.
→Interest cost in India has increased temporarily due to working capital borrowings but is expected to come down as debt reduces.
→Capex planned for FY26 includes maintenance and growth Capex totaling potentially INR 1,200-1,300 crores, with some moderation expected in FY25 capex.
→Overall, the company is emphasizing profitability, free cash flow generation, and return ratios rather than fund raising.

Order book

The transcript for the Apollo Tyres Q3 FY25 conference call does not explicitly mention details about the current or expected order book or pending orders. However, insights related to demand and outlook include: - Demand momentum in replacement segments is expected to continue improving in Q4 FY25. - Positive volume growth in replacement (5%) and flat exports; OE volumes declined by ~10%. - Expectation of improved volumes, especially in commercial vehicle (CV) and passenger car radial (PCR) segments. - Industry and company focus on premiumization and profitable segments with gradual volume pickup anticipated. - Europe operations are experiencing healthy demand growth, especially in replacement, with a 7% segment revenue increase. - The company sees recovery and growth opportunities, with Q4 and FY26 expected to show improvement. No direct figures or values for order book or pending orders were specified in the available transcript pages.

Capex plans

Yes

→FY26 Capex guidance: Normal maintenance capex around INR 700-750 crores plus additional growth capex of about INR 800 crores (ballpark figure), possibly totaling around INR 1,500 crores; more firm guidance to be provided later.
→Capex focus: Increasing capacity, especially for passenger car radial (PCR) tyres; no greenfield expansion planned in Europe, capacity additions through brownfield expansion in Hungary.
→Capacity addition: Expected to add about 7-8% capacity in India, slightly more in Europe; overall capacity increase around 10%.
→FY25 Capex: Approximately INR 700-800 crores expected for the full year, with some moderation in last quarter.
→Strategic growth markets: Focus on expanding presence in the US and Middle East (specifically Saudi Arabia).
→Priority on balancing growth with profitability, monitoring Capex spend closely to maintain free cash flow and improve return ratios.

How does Apollo Tyres Ltd rank vs peers in Auto Components?

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1Apollo Tyres Ltd

Rev 4Mar 3

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