Automobiles Q2 Results Preview - Festive Demand Revival Will Be A Critical Monitorable: Motilal Oswal

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..Motilal Oswal Report.Auto original equipment manufacturers are projected to deliver ~9% YoY volume growth in Q2 FY25, mainly driven by a robust performance in the two-wheeler segment. Dispatches for two-wheelers are anticipated to have grown ~12% YoY, with domestic volumes rising ~11% and exports growing 13% YoY. Passenger vehicles volumes are projected to remain flat YoY, while commercial vehicle volumes are likely to decline 10% YoY. Apart from two-wheelers and three-wheelers, tractor volumes are projected to see ~7% YoY growth..Revenue and Ebitda for our OEM coverage universe (excluding JLR) are expected to grow ~2% and 4% YoY during the quarter, respectively, while PAT is likely to remain flat. Ebitda margin is anticipated to improve 30bp YoY at 13.0%, driven largely by moderate commodity costs and favorable product mix. However, Ebitda margin is expected to contract 40 bp on a sequential basis due to weak demand and rising discounts..Commodity costs have turned favorable in Q2 FY25, with steel, aluminum, copper, and lead prices declining 5-6% QoQ. However, the full benefit may not be reflected in Q2 due to the lag effect from Q1, when the commodity basket saw a sequential rise. Meanwhile, rubber prices increased 4% QoQ and have surged ~67% YoY..Given the moderation in demand across various segments and a challenging outlook for exports, majority of our coverage companies (19 of 25) saw earnings downgrades. While the two-wheeler segment is expected to continue outperforming in FY25, this has already been factored into the recent rally in two-wheeler stocks. Hence, Maruti Suzuki and M&M are our top picks among Auto OEMs, while Motherson Sumi and Endurance Technologies are our preferred picks in the auto ancillaries segment..Click on the attachment to read the full report:.Cement Q2 Results Preview - Soft Demand, Prices Impact Performance; H2 To See Demand Recovery: Axis Securities.DISCLAIMERThis 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..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Automobiles Q2 Results Preview - Festive Demand Revival Will Be A Critical Monitorable: Motilal Oswal

Maruti Suzuki, M&M are the brokerages top picks among auto OEMs, while Motherson Sumi and Endurance Technologies in the auto ancillaries segment.

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Automobiles Q2 Results Preview - Festive Demand Revival Will Be A Critical Monitorable: Motilal Oswal

Maruti Suzuki, M&M are the brokerages top picks among auto OEMs, while Motherson Sumi and Endurance Technologies in the auto ancillaries segment.

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