Apollo Tyres prunes FY20 and FY21 capex by Rs 300 cr on auto slowdown

The move is in line with other tyre makers' plans to pare their outlays

Apollo Tyres has decided to cut back its capex by about Rs 300 crore to Rs 2,400 crore in 2019-20 and by a similar amount in FY21, following the slowdown in auto sector. The proposed capex mainly will be at company's upcoming unit in Andhra Pradesh and at its Hungary facility.

During the recent analyst call, company's management said, “The company had started the year with an estimate of Rs 2,700 crore capex, which has now been scaled back to Rs 2,400 crore. Over the last nine months, the company incurred a capex of about Rs 2,000 crore”.

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