Replacement demand to aid India's tyre volumes in fiscal 2024 - Crisil Ratings

JK Tyre & Industries

06/09/2023 09:14

** Replacement tyres, steady demand for commercial vehicles,
passenger vehicles will drive India's tyre volumes up 6-8% in
FY24 - Crisil Ratings
    ** Warns, volume growth could moderate from 14% and 11%
levels of FY22 and FY23, respectively; still be higher than
4%decadal average  
    ** Replacement segment accounts for ~60% of volumes, OEMs
~30% and exports the rest
    ** Crisil projects 300-400 bps expansion in operating margin
to 13-14% this fiscal due to softening prices  
    ** Lower-than-expected monsoon and high-base effect could
weigh on tractor volumes - Crisil
    ** Shares of JK Tyre & Industries  JKIN.NS  rise ~44% YTD,
Apollo Tyres Ltd  APLO.NS  up ~17%
    ** MRF Ltd  MRF.NS  and CEAT Ltd  CEAT.NS  up ~23% and ~37%,
respectively, this year 
        
    
    
    
    


 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))