Q1 2025 Apollo Tyres Ltd Earnings Call Transcript
Key Points
- Apollo Tyres Ltd (BOM:500877) achieved double-digit volume growth in the TBR and PCR replacement segments in India.
- The company successfully reduced consolidated net debt by more than 10% in Q1 FY25 compared to Q4 FY24.
- Apollo Tyres Ltd (BOM:500877) reported a 20%+ volume growth year-on-year in the export channel.
- The company has started supplying a marquee German passenger car manufacturer in India, enhancing its product capabilities and relationships with premium automotive companies.
- Apollo Tyres Ltd (BOM:500877) has rolled out domain-specific generative AI models to improve manufacturing, customer pricing, and R&D processes.
- Consolidated operating margin for Q1 FY25 was down by about 200 basis points sequentially due to raw material cost pressures.
- Overall top-line growth was impacted by weaker OEM volumes during the quarter.
- Near-term operating performance is expected to remain subdued due to the steep increase in commodity prices, particularly natural rubber.
- The company faced a negative growth in the OEM truck segment, significantly affecting overall demand momentum.
- The financial performance of the Trumigo venture was significantly lower than expected, leading to its shutdown.
Good afternoon, everyone. This is Amar Kant Gaur from Axis Capital, and I welcome you all to Q1 FY25 post-results earnings call of Apollo Tyres. We have with us today, Mr. Neeraj Kanwar, Vice Chairman and Managing Director of Apollo Tyres; Mr. Gaurav Kumar, Chief Financial Officer, and the IR team. We will start the call with brief opening remarks from the management team, followed by a Q&A session.
Over to you, Mr. Kanwar.
Thank you, and good afternoon, and thank you for joining us today, and I welcome you all to Apollo Tyres Q1 FY25 post-results conference call. And as always, I will start with a broad overview of the results and followed by key initiatives and then pass on the floor to Gaurav for his commentary on our financial performance, after which we are happy to take questions from you.
Q1 FY25 proved to be a challenging quarter and with modest top line growth and a muted operating performance. Consolidated operating
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