Auto, Auto Ancillary Q3 Results Preview - Margin Recovery To Take Centre Stage: ICICI Direct

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Direct Report.Robust order book across passenger vehicle original equipment manufacturers, strong festive led retails across segments, inventory de-stocking amid calendar year change and continued correction in commodity prices were some key highlights for Q3 FY23. Total industry volumes in Q3 FY23 are expected to decline ~10% QoQ primarily led by the muted performance in the two-wheeler and passenger vehicle space. Considering the magnitude of raw material price decline (metals, plastics down ~20%, ~50%, respectively, from Q1 FY23) and quarterly time lag in its impact on profit and loss amid management commentary guiding raw material benefits to accrue from H2 FY23, we expect gross margins to improve in range of 100-250 basis points QoQ for our coverage in Q3. We expect our coverage universe (excluding Tata Motors Ltd.) to report 3% QoQ sales de-growth (amid ~10% volume drop) and ~110 bps QoQ margin expansion to 12.9% with profit after tax expected to de-grow 4% QoQ (impacted by high other income in base quarter). .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Auto, Auto Ancillary Q3 Results Preview - Margin Recovery To Take Centre Stage: ICICI Direct

Total industry volumes in Q3 are expected to decline ~10% QoQ primarily led by the muted performance in the two-wheeler, PV space.

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Auto, Auto Ancillary Q3 Results Preview - Margin Recovery To Take Centre Stage: ICICI Direct

Total industry volumes in Q3 are expected to decline ~10% QoQ primarily led by the muted performance in the two-wheeler, PV space.

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