Apollo Tyres Reports Mixed Financial Results Amid Debt Management Improvements in June 2025

Apollo Tyres has recently reported its financial results for the quarter ending June 2025, revealing a complex picture of its performance. The company has experienced a notable adjustment in its evaluation, with its score improving to -6 from -13 over the past three months.
Several factors appear to be contributing positively to Apollo Tyres' financial standing. The operating profit to interest ratio has reached its highest level in the last five quarters at 8.63 times, indicating an enhanced capacity to manage interest obligations. Additionally, the debt-equity ratio has dropped to 0.30 times, marking the lowest level in the last five half-year periods, suggesting a strategic reduction in borrowing relative to equity capital.

Conversely, there are areas of concern reflected in the latest financials. The profit after tax (PAT) has significantly declined to Rs 137.18 crore, representing a decrease of 55.8% compared to the average PAT of the previous four quarters. Furthermore, earnings per share (EPS) have reached their lowest point in five quarters at Rs 0.20, indicating challenges in profitability. The debtors turnover ratio has also slowed, now at 8.53 times, which may reflect difficulties in collecting receivables.

In summary, while Apollo Tyres has made strides in managing its debt and interest obligations, it faces significant challenges in profitability and operational efficiency.

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