Apollo Tyres to maintain momentum in coming quarters on margin uptick

Volume growth expected to be led by the truck and bus replacement market

After outperforming the Indian tyre sector in the September quarter with a volume growth of 26 per cent, Apollo Tyres is expected to maintain its momentum in the coming quarters given higher share of truck radial business, strong replacement demand and higher utilisation levels. 

Softer raw material prices, both for natural rubber as well crude oil derivatives such as synthetic rubber, nylon tyre cord and carbon black, will help on the margin front for both the sector as well as Apollo Tyres.  The two (natural rubber and crude oil derivatives) together account for 80 per cent of raw materials consumed.

On the