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Soft rubber may stabilise tyre firms' margins

Chinese imports and consequent price cuts had cast a shadow on financials

Soft rubber prices could stabilise tyre co margins

Stocksoftyrecompanieshittheir52-weekhighslastweekonweaknessinpricesofnaturalrubberprices,akeyrawmaterialwhichaccountsfor30percentofrevenueforplayerssuchasApolloTyres.Pricesofrubber,Rs144akgatthestartofAugust,havefallen10percenttoRs129akg.Thefallhasalargefavourableimpactonfinancialsoftyrecompanies. BarringApolloTyres,otherswitnessedayear-on-yearimprovementinmargins.HigherotherexpensesdentedmarginsofApolloTyres,bothonyear-on-yearandsequentialbasis.AfterJunequarterresults,analystshadexpected ...