Apollo Tyres slumps after Q1 results

Apollo Tyres tumbled 10.48% to Rs 187.10 at 14:31 IST on BSE after consolidated net profit rose 27.48% to Rs 290.59 crore on 12.17% decline in total income to Rs 2870.78 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced during market hours today, 11 August 2015.

Meanwhile, the S&P BSE Sensex was down 182.46 points or 0.65% at 27,919.26.

On BSE, so far 17.36 lakh shares were traded in the counter as against average daily volume of 3.12 lakh shares in the past one quarter.

The stock was volatile. The stock tumbled as much as 11.48% at the day's low of Rs 185 so far during the day. The stock rose as much as 0.09% at the day's high of Rs 209.20 so far during the day. The stock had hit a record high of Rs 249.45 on 3 February 2015. The stock had hit a 52-week low of Rs 154.70 on 27 March 2015.

The stock had outperformed the market over the past one month till 10 August 2015, surging 19.05% compared with the Sensex's 1.59% rise. The scrip had also outperformed the market in past one quarter, jumping 27.36% as against Sensex's 3.68% rise.

The mid-cap company has equity capital of Rs 50.90 crore. Face value per share is Re 1.

Apollo Tyres' board of directors at its meeting held today, 11 August 2015, approved further expansion of the Truck & Bus radial tyre capacity at the Chennai plant from the currently planned 8,900 tyres per day to 12,000 tyres per day involving capital expenditure (capex) of Rs 1200 crore. In order to meet capex requirements towards ongoing/proposed expansions at Chennai and Kalamassery plants, the Board approved authorization for raising of debt of Rs 2000 crore by way of rupee term loan/foreign currency term loan/ECBs/non-convertible debentures etc. from time to time. The Board approved seeking authorisation of the shareholders through postal ballot for private placement of unsecured/secured non-convertible debentures not exceeding Rs 1000 crore within overall borrowing limits of the company for aforesaid capex requirements.

Apollo Tyres is in the business of manufacture and sale of tyres. The company offers a comprehensive product portfolio spread across passenger car, light truck, truck-bus, off highway and bicycle tyres, retreading material and retreaded tyres.

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