Near-term demand worries in replacements biz cloud Apollo Tyres' outlook

There could be some margin relief on account of falling input costs

Led by a strong operating performance, Apollo Tyres posted better than expected financials in the December quarter. Higher gross margins led to a surge in operating profit and the softening raw material basket is a positive for profitability going ahead. Despite the improved show, the stock is expected to be range bound given the subdued outlook for domestic and international replacement segments.

Though volumes in the December quarter for the standalone (India) business fell by 4 per cent, revenue growth came in at 12 per cent. This was driven by price hikes and product mix. Demand from auto makers remained