4QFY2011Result Update | Tyre

May 11, 2011

Apollo Tyres
Performance Highlights
Y/E March (Standalone) Net sales (` cr) EBITDA (` cr) EBITDA margin (%) Reported PAT (` cr)
Source: Company, Angel Research

BUY
CMP Target Price
% chg (yoy) 34.2 (20.7) (575)bp (43.0) Angel est. 1,490 142 9.5 49 % diff. 18.2 3.0 (123)bp 35.2

`71 `82
12 Months

4QFY11 1,762 146 8.3 66

4QFY10 1,313 185 14.1 116

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Tyre 3,556 1.1 89/44 850,142 1 18,585 5,565 APLO.BO APTY@IN

For 4QFY2011, Apollo Tyres reported better-than-expected top line on a standalone as well as consolidated basis, driven by strong volume growth and higher prices. Standalone operating margin came below expectations due to a steep increase in natural rubber prices, while consolidated margin benefitted due to gain of `90cr on account of pension and inventory revaluations. We retain our revenue and earnings estimates for the company and maintain our Buy recommendation on the stock. Standalone results beat estimates: Standalone top line registered strong 34.2% yoy (23% qoq) growth to `1,762cr, led by higher volumes (up 14% yoy) and prices. After three straight quarters of declining volumes, the company reported higher volumes in 4QFY2011, led by pick-up in demand in the replacement segment. Operating margin declined considerably by 575bp yoy and 209bp qoq to 8.3% mainly due to the 60% yoy and 16% qoq increase in natural rubber cost. Thus, net profit recorded a sharp 43% yoy decline to `66cr, though sequentially it grew by 22.8%. Noticeably, higher other income and lower tax rate on account of MAT credits positively helped the companys bottom line. Consolidated revenue up 27.4% yoy, net profit rises 10% yoy: Consolidated net revenue grew by 27.4% yoy (15.2% qoq) to `2,730cr due to a 12% yoy increase in volumes and a 15.6% jump in average realisation. In 4QFY2011, revenue of South African and European operations grew by 31% and 10% yoy, respectively. Operating margin declined by 215bp yoy to 11.8%, but improved by 24bp qoq. Operating performance benefitted due to gain of `90cr on account of pension and inventory revaluations. Net profit grew by 9.6% yoy (59.4% qoq) to `193cr. Outlook and valuation: We remain positive on the tyre industry in view of the structural shift that the industry is going through. We expect the company to deliver a healthy revenue CAGR of 15.3% over FY201113E, as the production ramp up at the Chennai facility continues as scheduled. However, volatile raw-material prices are a concern, and we expect margins to remain under pressure. We estimate the company to post EPS of `10.3 in FY2013. We maintain our Buy view with a target price of `82, valuing it at 8.0x FY2013E earnings.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 44.3 15.1 27.3 13.3

Abs. (%) Sensex Apollo Tyres

3m 4.8 38.5

1yr 8.4 4.3

3yr 11.0 61.8

Key financials (Consolidated)

Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 8,117 62.5 653.4 369.5 14.6 13.0 5.4 1.8 29.8 29.2 0.6 4.1

FY2011E 8,868 9.2 440.8 (32.5) 11.0 8.7 8.1 1.5 16.9 15.5 0.7 6.0

FY2012E 10,520 18.6 397.1 (9.9) 9.7 7.9 9.0 1.3 13.1 13.1 0.6 5.8

FY2013E 11,798 12.1 519.4 30.8 10.6 10.3 6.8 1.1 16.0 14.9 0.5 4.6

Amit Bagaria
022-39357800 Ext: 6824 amit.bagaria@angelbroking.com

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Apollo Tyres | 4QFY2011 Result Update

Exhibit 1: Quarterly performance (Standalone)

Y/E March (` cr) Net sales Consumption of RM (% of sales) Staff costs (% of sales) Purchases of TG (% of sales) Other expenses (% of sales) Total expenditure EBITDA EBITDA margin (%) Interest Depreciation Other Income PBT (excl. extr. Items) Exceptional items PBT (incl. extr. Items) (% of sales) Provision for taxation (% of PBT) Reported PAT PATM (%) Equity capital (cr) EPS (`)
Source: Company, Angel Research

4QFY11 1,762 1,262 71.6 75 4.2 48 2.7 232 13.2 1,615 146 8.3 44 39 17 81 81 4.6 14 17.9 66 3.8 50.4 1.3

4QFY10 1,313 851 64.8 72 5.4 40 3.0 166 12.7 1,128 185 14.1 20 29 9 144 144 11.0 28 19.3 116 8.8 50.4 2.3

% chg 34.2 48.3 4.4 20.1 39.2 43.2 (20.7) 118 32 92.2 (43.9) (43.9) (47.8) (43.0)

FY2011 5,491 3,695 67.3 307 5.6 159 2.9 796 14.5 4,957 534 9.7 149 147 26 264 264 4.8 65 24.8 198 3.6 50.4

FY2010 5,037 3,022 60.0 289 5.7 152 3.0 789 15.7 4,253 784 15.6 74 123 11 598 598 11.9 183 30.6 415 8.2 50.4 8.2

%chg 9.0 22.3 6.0 5.1 0.8 16.6 (31.9) 101.9 20.0 141.6 (55.9) (55.9) (64.4) (52.2)

(43.0)

3.9

(52.2)

Net revenue up 34.2% yoy, ahead of estimates: The companys standalone top line registered better-than-expected growth of 34.2% yoy to `1,762cr (`1,313cr) in 4QFY2011, backed by a strong 14% yoy increase in volumes and a ~17% increase in realisation following the increase in prices. Domestic volumes, which were impacted due to the lockout at the Perambra facility during 1HFY2011 and slowdown in the replacement demand for CV tyres in 3QFY2011, registered an improved performance during the quarter. For FY2011, Apollo Tyres witnessed revenue growth of 9% yoy to `5,491cr, primarily led by a 16% increase in realisation as volumes declined by 7%. The replacement segment contributed 66% to the companys top line, while contribution of OEM and exports stood at 26% and 8%, respectively.

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Exhibit 2: Net sales up 34.2% yoy

(`cr) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11
Source: Company, Angel Research; Note: Standalone performance

Net sales 46.5

yoy change (RHS)

(%) 50 40 34.2 30 20 8.2 10 0 (10)

24.3 18.2 9.7 (5.0) (3.7)

Operating margin declined to 8.3% due to higher natural rubber prices: On the operating front, the company reported a substantial 575bp yoy and 209bp qoq contraction in operating margin to 8.3%. The decline in margin can be attributed to the 60% yoy and 16% qoq increase in the cost of natural rubber. As a result, raw-material cost as a percentage of net sales jumped by 680bp yoy to 71.6% in 4QFY2011 vs. 64.8% in 4QFY2010. However, the decline in staff cost during the quarter arrested the margin contraction to a certain extent. As a result, operating profit fell by 20.7% yoy to `146cr.

Exhibit 3: Average raw-material cost trend

Particulars Nylon Tyre Cord Fabric Natural Rubber Carbon Black
Source: Company, Angel Research

4QFY11 225 230 57

4QFY10 195 140 50

%chg (yoy) 15.4 64.3 14.0

3QFY11 225 185 55

%chg (qoq) 0.0 24.3 3.6

Exhibit 4: Continuous rise in natural rubber prices...

(`/kg) 250 200 150 100 50 0 120 135 78 98 72 102 141 118 165 177 194 225

Exhibit 5: ...leads to EBITDA margin contraction

(%) 80 70 60 50 40 30 20 10 16.4 16.4 15.5 14.1 58.8 EBITDA margin 60.1 64.7 67.8 Raw material cost/sales 68.2 67.1 69.3 74.3

10.4

10.3

10.4

8.3

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

0 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11

Source: Company, Crisil Research, Angel Research

Source: Company, Angel Research; Note: Standalone performance

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Net profit at `66cr, down 43% yoy: Net profit registered a steep decline of 43% yoy to `66cr, higher than our estimate of `49cr. The decline in profitability was largely due to margin contraction at the operating level. Higher interest cost and depreciation also negatively affected the companys bottom-line performance. However, lower tax outgo on account of MAT credits and higher other income benefitted the bottom line to a large extent. Exhibit 6: Net profit dips on margin contraction
(` cr) 140 120 100 80 60 40 20 0 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11
Source: Company, Angel Research; Note: Standalone performance

Net profit 8.0 8.4 8.8 7.7

Net profit margin (RHS)

(%) 10 9 8 7 6 5 3.8 4 3 2 1 0

3.6

3.2

3.8

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Exhibit 7: Quarterly performance (Consolidated)

Y/E March (` cr) Net sales Consumption of RM (% of sales) Staff costs (% of sales) Purchases of TG (% of sales) Other expenses (% of Sales) Total expenditure EBITDA EBITDA margin (%) Interest Depreciation Other Income PBT (excl. extr. items) Exceptional Items PBT (incl. extr. items) (% of sales) Provision for taxation (% of PBT) Share in loss/(profit) of associates Minority interest Reported PAT Adjusted PAT PATM (%) Equity capital Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

4QFY11 4QFY10 2,730 1,592 58.3 250 9.2 149 5.5 417 15.3 2,408 321 11.8 54 74 17 210 210 7.7 18 8.4 (0) 193 193 7.1 50.4 3.8 3.8 2,143 1,202 56.1 297 13.9 108 5.1 237 11.1 1,845 298 13.9 13 64 13 235 (87) 322 15.0 59 18.4 263 176 8.2 50.4 5.2 3.5

% chg FY2011 FY2010 27.4 32.4 (15.8) 37.3 76.0 30.5 7.7 332.7 14.8 27.7 (10.4) (34.7) (70.3) (26.8) 9.6 8,868 4,821 54.4 1,155 13.0 481 5.4 1,432 16.2 7,890 978 11.0 185 272 26 547 547 6.2 106 19.4 1 (0) 440 440 5.0 50.4 (26.8) 9.6 8.7 8.7 8,121 4,152 51.1 1,088 13.4 429 5.3 1,277 15.7 6,946 1,175 14.5 115 254 21 827 (87) 914 11.3 261 28.5 653 566 7.0 50.4 13.0 11.2

%chg 9.2 16.1 6.1 12.2 12.2 13.6 (16.8) 60.5 7.0 23.2 (33.8) (40.1) (59.2) (32.6) (22.2)

(32.6) (22.2)

Consolidated performance: Net revenue reported strong 27.4% yoy and 15.2% qoq to `2,730cr on the back of better-than-expected performance in domestic markets and improvement in operations at the South African subsidiary. Overall performance was aided by a 12% yoy increase in volumes to 125,000MT and a ~16% yoy jump in realisation. Revenue of South Africa operations increased by 31% yoy to `354cr, while Europe reported 10% yoy growth to `623cr. Operating margin at the consolidated level declined by 215bp yoy mainly due to increased raw-material cost pressures. However, sequentially, the operating margin improved marginally by 24bp. Operating performance during the quarter benefitted due to gain of `90cr on account of pension and inventory revaluations. Net profit increased by 9.6% yoy and 59.4% qoq to `193cr.

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Conference call Key highlights

Raw-material costs and pricing action by the company: During 4QFY2011, natural rubber prices increased by ~60% yoy and ~16% qoq. Average rubber prices for the company during the quarter stood at `230/kg compared to `185/kg in 3QFY2011 and `140/kg in 4QFY2010. Prices of NTC fabric and carbon black increased by ~15% and ~14% yoy, respectively. On account of the continuous increase in raw-material prices, the company hiked its product prices in the domestic market by ~17% in FY2011. However, the company was unable to pass on the entire hike in raw-material prices. Further, with rubber prices ruling at new highs, the company is contemplating another hike in its product prices. Current capacity details: The companys capacity in India, South Africa and Europe stands at 950MT/day, 175MT/day and 150MT/day, respectively. The ramp-up at the Chennai facility is progressing as per the schedule, with current production at 150MT/day, and is expected to reach 400MT/day by the end of FY2012 and to 450MT/day by 1QFY2013. For FY2012, the company plans to incur overall capex of ~`1,000cr. The Indian operations will see capex of `700cr`800cr. Capex of ~`100cr each will be incurred at the South African and European facilities. The companys net debt, on a consolidated basis, stood at `2,300cr as of March 31, 2011. Capacity utilisation at domestic and European facilities currently stands at ~95%. Capacity utilisation of the South African facility is at ~90%.

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Investment arguments
Tyre industry set for a structural shift: Currently, manufacturing radial tyres is far more capital intensive than manufacturing cross-ply tyres. Investment required for radial tyres per tpd is 3.2x that of cross-ply tyres at `6.1cr/tpd. On the other hand, the selling price of radial tyres is ~20% higher than that of cross-ply tyres. Thus, to generate similar RoCE and RoE, tyre companies would need to earn EBITDA margins of ~21% compared to ~9% earned on cross-ply tyres, considering the difference in the capital requirements and consequent impact on asset turnover, interest cost and depreciation. Therefore, higher capital requirements will help protect margins from upward-bound input costs, as the business model evolves bearing in mind final RoEs rather than margins. With the sector set for a structural shift and the apparent pricing flexibility, RoCE and RoE of tyre manufacturers are expected to improve going forward. Riding on high domestic demand: The Indian tyre industry is witnessing strong demand from the replacement as well as OEM markets, keeping capacities running at peak. Apollo is poised to achieve market leadership on the back of increasing production from 820tpd in FY2010 to ~1,300tpd in FY2012E. Strategic overseas investment offers synergies in the long term: Acquisitions done by the company in the last two-three years are increasingly contributing to its revenue. We estimate Vredestein Banden combined with Dunlop SA to contribute 30% to the companys overall consolidated revenue, helping it to further strengthen its foothold in the Indian tyre industry. Acquisitions offer synergies by way of access to radial tyre technology, wider product portfolio and presence in newer geographies.

Outlook and valuation

We remain positive on the tyre industry in view of the structural shift that the industry is going through. We expect the company to deliver a healthy revenue CAGR of 15.3% over FY201113E, as it continues to ramp up production at the Chennai facility as per the planned schedule. However, volatile raw-material prices are a concern, and we expect the companys margins to be under pressure. We expect the company to post EPS of `10.3 in FY2013. We maintain our Buy view on the stock with a target price of `82, based on 8.0x FY2013E earnings. Key downside risk to our call: A sharp rise in input costs from current levels, slower growth in international business and lower-than-anticipated growth in tyre offtake pose downside risks to our estimates.

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Exhibit 8: Angel vs. consensus forecast

Angel estimates FY12E Net sales (` cr) EPS (`)
Source: Bloomberg, Angel Research

Consensus FY12E 8.6 FY13E 10.4

Variation (%) FY12E FY13E (2.4) (8.4) (4.3) (0.9)

FY13E 10.3

10,520 7.9

11,798 10,774 12,332

Exhibit 9: One-year forward P/E band

(`) 140 120 100 80 60 40 20 0 Share Price (`) 1x 4x 7x 10x

Exhibit 10: One-year forward P/E chart

(x) 20 18 16 14 12 10 8 6 4 2 0 One-yr forward P/E Five-yr average P/E

Jun-06

Jan-06

Mar-08

Nov-06

Feb-09

Jan-10

Jun-10

May-07

Nov-10 Nov-10

Oct-07

Jul-05

Sep-08

Jul-09

May-06

May-11

Nov-10

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 11: One-year forward EV/EBITDA band

(` cr) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 EV (`cr) 2x 4x 6x 8x

Exhibit 12: One-year forward EV/EBITDA chart

(x) 8 7 6 5 4 3 2 1 0 One-yr forward EV/EBITDA Five-yr average EV/EBITDA

Feb-04

Sep-07

Sep-03

Jul-09

May-06

May-11

Sep-08

Feb-09

Jul-05

May-07

Jul-09

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 13: Tyre - Recommendation summary

Company Apollo Tyres* Ceat JK Tyre* Reco. Buy Buy Buy CMP (`) 71 99 93 Tgt. price (`) 82 135 133 Upside (%) 16.8 36.5 43.1 P/E (x) FY12E FY13E 9.0 6.9 5.8 6.8 3.3 3.1 EV/EBITDA (x) FY12E 5.8 9.1 5.5 FY13E 4.6 6.0 4.5 RoE (%) FY12E 13.1 7.4 7.1 FY13E 16.0 15.2 12.0 FY10-13E EPS CAGR (%) (7.4) (14.7) (17.9)

Source: Company, Angel Research; Note: * FY2012E and FY2013E EPS on consolidated basis

May 11, 2011

May-11

Dec-05

Dec-09

Jun-05

Jan-05

Jan-09

Jun-10

Jun-06

Aug-04

Mar-08

Aug-08

Jan-06

Apr-07

Nov-06

Nov-10

Nov-06

Mar-08

Apr-03

Oct-07

Jan-10

Jun-10

May-11

Feb-04

Sep-03

Sep-07

Dec-05

Jul-09

Dec-09

Jun-05

Aug-04

Aug-08

Jan-05

Nov-06

Mar-08

Apr-03

Apr-07

Jan-09

Jun-10

Apollo Tyres | 4QFY2011 Result Update

Profit and Loss Statement (Consolidated)

Y/E March (` cr) Net Sales Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Items PBT Tax (% of PBT) PAT Adj. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY08 4,695 4,695 9.4 4,098 2,929 338 440 390 597 49.5 12.7 130 467 65.6 10.0 89 26 6.5 405 106.4 (0) 406 136 33.4 270 270 130.4 5.7 5.5 5.5 118.9 FY09 4,995 4,995 6.4 4,573 3,411 337 415 410 422 (29.3) 8.5 129 294 (37.2) 5.9 112 31 14.7 213 (47.3) (1) 214 74 34.7 140 139 (48.4) 2.8 2.8 2.8 (50.0) FY10 8,117 8,117 62.5 6,933 4,577 542 1,088 726 1,184 180.4 14.6 254 930 216.5 11.5 134 119 12.9 914 328.3 (3) 917 261 28.4 657 653 369.5 8.0 13.0 13.0 369.5 FY11E 8,868 8,868 9.2 7,890 5,302 602 1,155 831 978 (17.4) 11.0 272 706 (24.0) 8.0 185 26 4.8 547 (40.1) 547 106 19.4 441 441 (32.5) 5.0 8.7 8.7 (32.5) FY12E 10,520 10,520 18.6 9,497 6,772 642 1,231 852 1,024 4.6 9.7 316 707 0.1 6.7 197 20 3.7 529 (3.2) 529 132 25.0 397 397 (9.9) 3.8 7.9 7.9 (9.9) FY13E 11,798 11,798 12.1 10,550 7,470 720 1,393 967 1,247 21.9 10.6 378 869 22.9 7.4 198 21 3.1 692 30.8 692 173 25.0 519 519 30.8 4.4 10.3 10.3 30.8

May 11, 2011

Apollo Tyres | 4QFY2011 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,955 750 1,205 95 22 5 1,484 285 171 1,028 811 673 2,000 2,284 882 1,402 281 24 5 1,423 362 206 855 700 723 2,435 5,563 3,120 2,443 536 118 6 2,439 349 310 1,780 1,614 824 3,926 6,942 3,392 3,550 347 125 11 3,290 191 395 2,704 2,113 1,177 5,210 7,910 3,709 4,201 395 125 17 3,108 132 421 2,555 2,238 870 5,608 8,397 4,086 4,310 420 125 21 3,579 242 472 2,865 2,416 1,163 6,039 49 1,129 1,178 646 176 2,000 50 1,299 1,350 891 194 2,435 50 1,917 1,968 1,707 251 3,926 50 2,362 2,413 1 2,480 316 5,210 50 2,761 2,811 1 2,480 316 5,608 50 3,191 3,242 1 2,480 316 6,039 FY08 FY09 FY10 FY11E FY12E FY13E

May 11, 2011

10

Apollo Tyres | 4QFY2011 Result Update

Cash Flow Statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in loans and adv. Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balance Closing Cash balance FY08 406 130 104 190 136 313 (18) 0 18 26 27 72 (177) 29 (173) (249) 91 194 285 FY09 214 129 (67) (306) 74 508 0 (28) 31 46 245 27 (234) 83 77 285 362 FY10 917 254 97 (421) 261 1,428 (1) (111) 119 0 816 44 1,225 2,086 (13) 362 349 FY11E 547 272 369 554 106 528 (1,190) (5) (85) 26 (1,255) 0 773 29 (234) 569 (158) 349 191 FY12E 529 316 (246) (744) 132 1,212 (1,016) (6) 26 20 (976) 0 0 44 (304) (259) (59) 191 132 FY13E 692 378 188 226 173 860 (511) (4) 51 21 (443) 0 0 88 (395) (307) 110 132 242

(517) (3,533)

(513) (3,527)

May 11, 2011

11

Apollo Tyres | 4QFY2011 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) RoIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating RoE Returns (%) RoCE (Pre-tax) Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT/Interest) 0.3 0.6 5.3 0.4 1.2 2.6 0.7 1.1 6.9 0.9 2.3 3.8 0.8 2.3 3.6 0.7 1.8 4.4 2.4 53 26 58 28 2.4 49 20 47 27 2.1 36 23 43 19 1.4 57 36 62 30 1.4 52 37 63 30 1.4 52 37 62 26 23.9 27.3 21.3 13.2 14.2 8.4 29.2 26.0 29.8 15.5 14.1 16.9 13.1 12.9 13.1 14.9 15.0 16.0 10.0 0.7 2.7 18.1 8.0 0.5 22.8 5.9 0.7 2.6 10.1 9.5 0.3 10.3 11.5 0.7 2.9 23.6 7.4 0.6 32.7 8.0 0.8 2.1 13.2 7.1 0.8 18.3 6.7 0.8 2.0 10.1 6.0 0.9 13.8 7.4 0.8 2.1 11.6 6.0 0.8 15.8 5.5 5.5 8.2 0.5 24.1 2.8 2.8 5.3 0.4 26.8 13.0 13.0 18.1 0.7 39.0 8.7 8.7 14.1 0.5 47.9 7.9 7.9 14.2 0.8 55.8 10.3 10.3 17.8 1.5 64.3 12.8 8.6 2.9 0.7 0.8 6.4 1.9 25.6 13.3 2.6 0.6 0.8 9.7 1.7 5.4 3.9 1.8 1.1 0.6 4.1 1.3 8.1 5.0 1.5 0.7 0.7 6.0 1.1 9.0 5.0 1.3 1.1 0.6 5.8 1.0 6.8 4.0 1.1 2.1 0.5 4.6 1.0 FY08 FY09 FY10 FY11E FY12E FY13E

May 11, 2011

12

Apollo Tyres | 4QFY2011 Result Update

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Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Apollo Tyres No Yes No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 11, 2011

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