Apollo Tyres will be reporting its Q1 earnings today and analysts expect the company to report a weak set of results this time around.

The numbers are expected to be on the weaker side because the standalone business of the OEM segment has been weak. It has been offset by single-digit growth in the replacement market, but the main OEM business has seen about 10-20 percent drop and because of that overall revenue growth is expected to be at 3.3 percent; it is expected to be a little over Rs 4,400 crore.

On the margin front, margins are expected to be crunched down because the European business has been under pressure. Last quarter the European business, Vredestein had posted an EBIT loss and this time around as well the losses are expected to continue. There is an expectation of 7 percent revenue growth in euro terms in the manufacturing operations because of a ramp-up of few plants that they had undertaken.

However, on the EBIT front, the losses are expected to continue. It is also a seasonally weak quarter for the company which is why the margins could be under pressure. Profits as well will fall about 36 percent at Rs 160 crore.

The stock has been down almost 40 percent in 2019 and currently is sitting at a 52-week low. If there is no major disappointment, then there could be a bit of a pop, but the numbers will be weak.