Indian tyre firms may face dent in margins
January 12, 2010 5:17 am
Indian tyre companies are likely to face a dent in their margins in coming quarters due to unabated rise in rubber prices over the past six months. The stock price of major players such as Apollo Tyres, JK Tyre, Ceat and MRF have dropped 3-5 per cent on the back of the surge in raw material price over the past one month, when the benchmark Sensex gained 5 per cent.
Rubber prices, which account for half of the cost of a tyre, have shot up 40 per cent since June due to a shortfall in domestic production and high import duty. Rubber prices have increased 20 per cent in the past one month to Rs 130 per kg.
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