Auto, Auto Ancillary Q3 Results Preview - Strong Quarter Likely; Outlook Remains Positive: Nirmal Bang

Nirmal Bang Report

We expect overall revenue of our auto coverage universe to grow by 16% YoY in Q3 FY24 and Ebitda to grow by 32% YoY.

On YoY basis, two-wheeler segment grew by ~20%, PV segment by ~8%, commercial vehicle segment by 4% while tractor volume declined by ~4%.

Demand for SUVs remained strong whereas demand for low-end passenger vehicles remained muted. Two-wheeler volume performance has been robust on the back of the festive season, better urban/rural demand and pick-up in demand for entry-level motorcycles.

Ebitda margin should expand by 170 basis points YoY on the back of better operating leverage and price hikes by auto coverage companies.

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