ET Now: What do you make of Apollo Tyres numbers? On all count, numbers were above estimates. In a tough environment, margins have expanded, however for the quarter gone by, margins for Apollo Tyres were up by about 3 per cent.
Dipen Shah: Yes we have a positive view on Apollo Tyres. The results were better than expected and the margins were the positive surprise.
We believe that it is once again the European business which is doing well. It was a seasonally good quarter for the European business and that is what led to the revenue growth as well as margins being better than estimates and we believe that on the margin front, the company will continue to do better because rubber prices which is the main raw material has come off quite a bit.
The fall has been almost about 15 per cent over the last couple of months and that is what should sustain the margins at these high levels going ahead. So Apollo Tyres after the Cooper ordeal is now coming back on track and we believe the raw material prices, the rubber price reduction will actually help the company report good numbers going ahead.
India Times
