Apollo Tyres Limited (ATL) Q1FY21 results were ahead of estimates, mainly driven by better-than-expected revenues. A sharp recovery in replacement demand in both domestic as well as the European businesses helped revenue exceed estimates. Operating margins were better than expectations mainly due to employee furlough benefits to the tune of Euro 7 million (Rs 60 cr). The company reported lower than expected loss. With the government opening up the economy, domestic replacement demand has recovered sharply, reporting a 10% y-o-y growth in June 2020 and a 7-8% y-o-y growth in July 2020. As per management the recovery in replacement demand...