NEW DELHI: India’s top tyre manufacturers are expected to report double-digit revenue growth on the back of improved sales to automakers and in the aftermarket segment. “The Indian tyre industry is expected to recover from five years of weakness and be on a linear growth path (12% CAGR over FY21-25E), supported by timely capacity expansion across companies. This coupled with a reasonable pricing environment and operating leverage, will enable a recovery in profitability and capital efficiency, they said. “Since December FY 20, Tyre companies have taken a price hike of 8% till June 21. We estimate gross margin for Tyre companies to decline by 80-110 bp over FY21-23E.

Source: Mint July 20, 2021 04:30 UTC