Tyre Industry Check - Steep Fall In Raw Material Cost To Drive A Margin Recovery: Motilal Oswal
Tyres Industry Check - Steep Fall In Raw Material Cost To Drive A Margin Recovery: Motilal Oswal
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Motilal Oswal Report
After witnessing hyper-inflation in its key input cost over the last 15-18 months, the tyre industry is seeing a moderation in natural rubber as well as crude prices (with a lag in synthetic rubber and carbon black prices).
This augurs well for a margin recovery from H2 FY23. Coupled with asset sweating and controlled capex, it will drive an improvement in free cash flow, financial gearing, and return on capital employed.
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