Apollo Tyres drops amid volatility after Q1 results

Apollo Tyres lost 3.88% to Rs 60.70 at 15:24 IST on BSE after consolidated net profit rose 20.23% to Rs 165.94 crore on 0.83% growth in total income to Rs 3200.94 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced during trading today, 7 August 2013.

Meanwhile, the S&P BSE Sensex was down 67.21 points or 0.36% at 18,665.83.

On BSE, 18.84 lakh shares were traded in the counter as against average daily volume of 11.86 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 5.62% at the day's low of Rs 59.60 so far during the day. The stock rose as much as 1.82% at the day's high of Rs 64.30 so far during the day. The stock had hit a record high of Rs 102.45 on 14 September 2012. The stock had hit a 52-week low of Rs 54.60 on 21 June 2013.

The stock had outperformed the market over the past one month till 6 August 2013, rising 2.85% compared with the Sensex's 3.91% fall. The scrip had, however, underperformed the market in past one quarter, declining 36.63% as against Sensex's 4.78% fall.

The mid-cap company has equity capital of Rs 50.40 crore. Face value per share is Re 1.

During the quarter, the company along with its subsidiary & step-down subsidiary in Mauritius & South Africa has entered into an agreement with Sumitomo Rubber Industries (SRI), by which Sumitomo will take over the operations of Apollo Tyre South Africa (Pty) (ATSA), a subsidiary of Apollo (South Africa) Holdings (Pty), including the Ladysmith plant and Dunlop brand in 32 countries in Africa. The company will retain its Durban plant and will continue to manufacture and sell tyres other than Dunlop Brand.

During the quarter, the company through its subsidiary & step-down subsidiaries in Mauritius, Netherlands and USA has entered into a definitive merger agreement for the acquisition of Cooper Tire & Rubber Corp. in USA. Under this, a newly formed wholly-owned step-down subsidiary of the company i.e. Apollo Acquisition Corp. in USA is to merge with Cooper in an all-cash transaction valued at approximately $2.5 billion.

Apollo Tyres manufactures tyres and tubes for cars, trucks, farm equipment and light commercial vehicles. The company also manufactures automobile flaps and retreading materials.

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