Replacement segment gives smooth ride to Apollo Tyres amid auto slowdown

Slowing auto sales, higher commodity costs remain major areas of concern

The stock of Apollo Tyres gained over 5 per cent after its June quarter results, which came marginally ahead of analysts’ estimates. Revenues, on the back of robust growth in both Indian and European operations, stood at Rs 4,272 crore, slightly more than the Rs 4,249 crore last year.

Indian operations, which account for over 70 per cent of revenues, were up 1 per cent; the European business saw 5 per cent growth.

Growth in India was led by the replacement segment, both in the commercial and passenger vehicles segments. This is the largest segment and accounts for over two-thirds of the