Apollo Tyres Reports Negative Performance in Q1, Receives 'Hold' Call from MarketsMOJO

Apollo Tyres, a leading player in the tyre industry, recently announced its financial results for the quarter ending June 2024. The company has received a 'Hold' call from MarketsMOJO, indicating a neutral stance on the stock.

According to the financials, Apollo Tyres has seen a negative performance in the quarter, with a score of -9 compared to 1 in the previous quarter. However, there are some positive aspects to the company's financials. The operating cash flow for the year has been the highest in the last three years, at Rs 3,439.52 crore. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas of concern for Apollo Tyres. The profit before tax less other income (PBT) for the quarter has fallen by 29.7% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also fallen by 25.4% compared to the average PAT of the previous four quarters. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also decreased, showing a decline in the company's efficiency.

The earnings per share (EPS) for the quarter are at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The dividend payout ratio (DPR) for the year is also at its 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 June 2024. While there are some positive aspects, the company needs to address the areas of concern to improve its financial performance in the future. Investors are advised to hold their position on the stock, as recommended by MarketsMOJO.