Apollo Tyres – Neeraj Kanwar

  • Last year has been challenging in terms of margins - Raw material prices have gone up - Revenue side has been positive
  • Demon, GST, Anti duming duty has impacted Chinese imports in India. From nearly 30% of truck radial mkt they are down to 1/3rd of that
  • RM costs still have some pressure on margins due to oil prices, carbon black availability - Causing challenge to bottomline
  • Going forward seeing upwards momentum on both PV and CV side
  • See double digit growth coming in Q1 and Q2
  • Today demand is more than supply in terms of what we can cater to PV and CV segment
  • Times on revenue side are good
  • 60-65% sales comes from CV segment
  • We have 28-29% share in truck bus radials
  • Expect CV segment volume growth in high teens
  • Capex - doubling capacity in chennai 6000 to 12000 tyres/day (Currently at 9000 tyres/day)
  • Hungary plant - invested 500 mn euros - (Currently at 8000 tyres/day in PV); By Sept trying to reach 16000 tyres/day
  • TBR tyres to be launched this May-June in Europe
  • We have done very well in europe , gained mkt share there
  • Signed with AP Govt - cannot say the amount of money to be invested - still at project stage
  • Looking at building capacity of 16000 tyres/day in AP - but investments will start in FY20
  • Free cash flows will come in from FY19-20
  • Rubber prices - not been coming off - margins would be under pressure in Q4
  • RM basket still remains challenge for us and the industry

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