Auto Q3 Preview - Robust Performance By Two-Wheeler OEMS; Management Commentaries Critical: Axis Securities

Axis Securities Report

We expect auto original equipment manufacturers under our coverage to post revenue/Ebitda/profit after tax growth of 17%/34%/33% YoY in Q3 FY24. This will be led by-

1. Sales growth in the two-wheeler segment (up ~19% YoY); domestic passenger vehicle segment (8-10% YoY); domestic commercial vehicle segment (4%), and domestic three-wheeler segment (23%); this, however, will be partly offset by a 4-6% YoY drop in the domestic tractor sales volumes,

2. Higher average selling price on a YoY basis, led by price hikes undertaken by OEMs over the year and richer mix,

3. Correction in the raw material prices over the high base of the last year as commodity prices are down on a YoY basis. This will lead to higher Ebitda margins (up ~172 bps YoY).

On a sequential basis, we expect auto OEMs under our coverage to register de-growth of 2%/7%/8% in revenue/Ebitda/profit after tax and Ebitda margin contraction of ~72 bps on a QoQ basis.

This will be led by sequential growth of 4%/15% in two-wheeler/tractor domestic sales volumes in Q3 FY24, which, however, will be partly offset by 6%/5%/7% de-growth in passenger vehicle/commercial vehicle/three-wheeler domestic sales volume.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.