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
Near normal economic activity, healthy retail sales (Q1 FY23 averaging at ~92% of pre-Covid levels), robust demand in passenger vehicle segment amid new launches in the sports utility vehicle domain, cut in excise duty on fuels (Rs 8/litre on petrol, Rs 6/litre on diesel) in May 2022 and plummeting key raw material prices (mainly metals) towards the fag end of the quarter post their peak in April-May 2022 were the key highlights for Q1 FY23E.
Total industry volumes in Q1 FY23 are expected to jump up ~10% QoQ led by the robust performance by the industry leader in the two-wheeler space with rest of the categories (passenger vehicle, three-wheeler, commercial vehicle) witnessing de-growth QoQ.
Building in conservative estimates and quarterly lag of raw material costs impact, we build in ~50 bps gross margin decline for our coverage companies in Q1 FY23E.
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