Margin benefits to dip for Apollo Tyres

Apollo Tyres Ltd is riding high on tailwinds from lower input costs. In the September quarter (Q2FY24), consolidated Ebitda margin rose by 160 basis points (bps) sequentially and 650 bps year-on-year to 18.5%.

- Pallavi Pengonda

Natural rubber, synthetic rubber and carbon black are the main inputs for tyre makers. Plus, other expenses were lower by 2% year-on-year.

Apollo’s India business performance was comparatively better than that of Europe on both margin and revenue fronts. India business revenue growth was soft at 3.6% year-on-year. Overall volumes grew by 5% with growth in both OEM and replacement segment in healthy double-digits. But the steep 40% drop in export volumes was a letdown. Apollo maintains that sequentially, there has been a marginal improvement in exports, although the environment in key export markets remains challenging.