NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
Auto OEM
The companies under our coverage reported revenue/Ebitda/PAT growth of 11%/30%/28% YoY, surpassing expectations of 10%/24%/21%. This performance was driven by higher average selling prices, better sales volumes, the premiumisation trend, cost optimisation efforts, and operating leverage.
On a QoQ basis, aggregate revenue/Ebitda/PAT declined by 4.5% / 4.2%/2.2%, against expectations of ~6%/9%/7% declines due to seasonality. The YoY growth in Ebitda was largely attributed to cost optimisation efforts and stable commodity prices, as observed in Hero Motocorp, Bajaj Auto, Eicher Ltd, TVS Motors, Maruti, and Ashok Leyland.
Ebitda margins expanded by 207 basis points/2 bps YoY/QoQ. The YoY margin expansion was driven by higher ASPs (due to product premiumization), cost control efforts, and largely stable raw material input costs.
Auto Ancillaries Review – Long-term Growth Drivers Intact
The companies under our coverage reported revenue/Ebitda/PAT growth of 11%/10%/12% YoY, exceeding expectations of 9%/9%/8%. This growth was primarily driven by the premiumization trend in two-wheelers and passenger vehicles, stable raw material prices, and cost control efforts across auto ancillaries.
Sansera Engineering, Endurance Technologies, UNO Minda, and Minda Corp reported strong YoY growth in Ebitda, while CIE Automotive and Steel Strip Wheel were flat. Automotive Axles experienced a 17% YoY decline due to reduced volumes in the CV industry trucking segment.
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This report is authored by an external party. NDTV Profit 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 NDTV Profit.
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