India Automobiles Q3 Results Preview - Benign Commodity Costs To Aid In YoY Margin Expansion: Systematix

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. .Systematix Research Report.Demand momentum for commercial vehicles remains robust, with volumes having surged QoQ during Q3 FY23; light commercial vehicles however, declined sequentially. The passenger vehicle segment also continues to see strong demand, albeit only in the utility vehicle segment (now forming 51% of total PVs) while demand for entry level cars remains subdued. Two-wheeler demand is consolidating, wherein only scooters and premium motorcycles (125cc+) are seeing recovery. Tractors continue to do well. Exports remain muted across segments. With prices of key commodities having corrected over the past two quarters (prices across the basket were lower 10-30% YoY in Q3 FY23), we expect Ebitda margin to expand YoY across most original equipment manufacturers, though operating deleverage will likely impact margins QoQ for some OEMs. For ancillaries, expected pass-through of commodity price benefits over H2 FY23 would aid operating margins during the quarter..Click on the attachment to read the full report:.Auto, Auto Ancillary Q3 Results Preview - Margin Recovery To Take Centre Stage: ICICI Direct.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.

India Automobiles Q3 Results Preview - Benign Commodity Costs To Aid In YoY Margin Expansion: Systematix

With prices of key commodities having corrected over the past two quarters, we expect Ebitda margin to expand across most OEMs.

Choose a plan