Automobiles Q1 Results Preview - Signs Of Growth Moderation Visible In Most Segments: Motilal Oswal

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..Motilal Oswal Report.Q1 FY24 was a mixed bag from demand perspective, with signs of volume growth moderation in some segments. Demand largely remained intact for domestic two-wheelers and passenger vehicels, whereas volumes declined for commercial vehicles (due to pre-buy in Q4 FY23) and tractors (high inventory and Navratras in March 2023). Two-wheeler exports remained weak. In terms of wholesale volumes, we estimate Q1 FY24 volumes to grow 3% YoY for two-wheelers, 33% YoY for three-wheelers, and 11% YoY for PVs, while it is expected to decline by 1% YoY for medium and heavy commercial vehicles, 6% YoY for light commercial vehicles, and 3% YoY for tractors. Domestic two-wheeler volumes grew 12% YoY whereas exports declined 20% YoY. We estimate Ebitda margins to improve for the fifth quarter in a row on a YoY basis, with a 220 basis points YoY gain (up 50 bp QoQ) for our auto original equipment manufacturer universe (excluding Jaguar Land Rover), led by a better mix, favorable forex, and operating leverage benefits. Except for CV-focused OEMs and Maruti Suzuki India Ltd., all other OEMs are likely to report margin expansion on a QoQ basis as well.We revise our FY24E earnings per share for select companies to account for: demand evolution in the domestic market, weakness in exports, andcommodity price/forex changes. We lower our FY24E EPS for Sona BLW Precision Forgings Ltd. (-5.6%), whereas upgrade our FY24E EPS for Ashok Leyland Ltd. (up 13%), Bajaj Auto Ltd. (up 9%), Tata Motors Ltd. (up 9%), and Maruti Suzuki (up 5%)..Click on the attachment to read the full report:.Cement Sector Q1 Results Preview - It’s Raining Volumes! Yet A Dry Patch For Ebitda: ICICI Securities.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.

Automobiles Q1 Results Preview - Signs Of Growth Moderation Visible In Most Segments: Motilal Oswal

Margin expansion to continue in Q1; commodity cost softens further.

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