Automobiles Q3 Results Preview - Demand Largely Stable Post Festive Season, Supplies Improving: 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.Q3 FY23 volumes were reasonably good, considering channel inventory filling for the festive season in Q2 FY23. Demand largely remained intact across segments, except for the entry-level passenger vehicle segment. Stable demand environment in the domestic market, along with limited impact of supply-side issues, boosted wholesales. In terms of wholesale volumes, PVs posted 19% YoY growth (down 10% QoQ), commercial vehicles saw 12.5% YoY growth (down 2% QoQ), two-wheelers volumes declined 6% YoY (down 22% QoQ) and tractors grew 10% YoY (up 6% QoQ). This was despite the timing difference in the festive season (Diwali was in Nov in FY22). We estimate margins to improve for the second quarter in a row, with 160 basis points YoY (up 40 bps QoQ) expansion in Ebitda margins for our auto original equipment manufacturer universe (excluding Tata Motors Ltd.), led by benefits of raw material cost moderation (down 100 bps YoY, down 70 bps QoQ)..Click on the attachment to read the full report:.IT Services Q3 Results Preview - Seasonality-Led Slower Demand To Hurt Growth: Motilal Oswal.BFSI Q3 Results Preview - Improving Credit Growth, NIM Trajectory To Aid Profitability: ICICI Securities.Capital Goods Q3 Results Preview - Healthy Execution; Expected Margin Revival: Prabhudas Lilladher.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 Q3 Results Preview - Demand Largely Stable Post Festive Season, Supplies Improving: Motilal Oswal

Demand largely remained intact across segments, except for the entry-level passenger vehicle segment.

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