Apollo Tyres share price fell over 4% on Thursday after the company declared loss for the quarter ended June 2020.
One of the country's largest tyre manufacturer reported a net loss of Rs 134.58 crore in Q1 against a net profit of Rs 141.6 crore in Q1 of previous fiscal. This was on account of subdued demand for its products in India and European markets due to the Covid-19 pandemic, the company said in a BSE filing.
Following the result update, Apollo Tyres shares fell 4.14% to the intraday low of Rs 111 on BSE against the earlier close of Rs 115.80. The stock also hit an intraday high of Rs 116.25 during today's session, after opening at Rs 115.60.
Shares of Apollo Tyres have fallen over 2% in one month and 29% since the beginning of the year. Apollo Tyres stock stands higher than its 5, 20, 50 and 100-day but lower than 200-day moving averages. Apollo Tyres stock has fallen after 2 days of consecutive gain
The company registered a significant decline of 33.65% YoY in its revenue from operations at Rs 2,873.43 crore during the quarter, from Rs 4,272 crore in the year-ago period.
Company's earnings before interest, tax depreciation and amortization (EBITDA) dropped 44.22% YoY to Rs 264.9 crore.
Onkar S Kanwar, chairman, Apollo Tyres said that different divisions of the company across geographies have shown tremendous resilience amidst the pandemic, and have adapted to the new normal for business continuity. In Europe, the company is performing better than the industry, which is likely to continue going forward as well, he added."While the first half of the first quarter was almost a complete washout, our performance has been excellent since the markets opened up, especially in the replacement market. While the uncertainty will continue, and we will have to find opportunities for growth, I am hopeful of the markets further recovering and the sales bouncing back around the festive season in India. In Europe, we are performing better than the industry, which is likely to continue going forward as well," Kanwar said.