Emkay Global Financial Services has come out with its June quarterly earning estimates for automobiles sector. The research firm expects adjusted EBIDTA margins to decline by 90bps YoY and 70bps QoQ to 11.7%.
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Auto Q1 sales growth seen at 24% YoY: Emkay
Emkay Global Financial Services has come out with its June quarterly earning estimates for automobiles sector. The research firm expects adjusted EBIDTA margins to decline by 90bps YoY and 70bps QoQ to 11.7%.
Like this story, share it with millions of investors on M3
Auto Q1 sales growth seen at 24% YoY: Emkay
Emkay Global Financial Services has come out with its June quarterly earning estimates for automobiles sector. The research firm expects adjusted EBIDTA margins to decline by 90bps YoY and 70bps QoQ to 11.7%.
Emkay Global Financial Services has come out with its June quarterly earning estimates for automobiles sector. The research firm expects adjusted EBIDTA margins to decline by 90bps YoY and 70bps QoQ to 11.7%.
We expect our automobile universe to report 24% YoY growth (-11% QoQ) in sales to Rs 801 bn driven by volumes and pricing action. Excl. TML subs, sales growth to moderate to 10% YoY (-15% QoQ) to Rs 476bn
Adjusted EBIDTA at Rs 93.6 bn is expected to grow only 15% YoY due to higher input costs. Sequentially, EBIDTA is expected to decline 16% due to lower operating leverage benefits, adverse currency and higher discounts. Excl. TML subs, EBITDA is likely to decline 21% QoQ (-3% YoY) to Rs 47 bn
Adjusted EBIDTA margins to decline by 90bps YoY and 70bps QoQ to 11.7%. Excluding TML subs, margin decline to increase to 9.9% (-145 bps YoY/-75 bps QoQ). Sequential decline is largely expected across most companies. AL (330 bps), BJAUT (26 bps) Eicher (121 bps), MM (60 bps) and MSIL (40 bps) to report decline QoQ. HMCL and TVSL to show marginal improvement in margins QoQ
APAT to increase 13% YoY (decline 44% QoQ) to Rs 54 bn. Ex TML subs, APAT to decline 13% YoY and 30% QoQ to Rs 26.3 bn. Highest sequential decline is expected in AL (73%), TTMT (55%) and MSIL (39%) driven by weak demand, lower operating leverage and adverse currency. Only improvement is seen in HMCL (10% QoQ)
Key things to focus will be impact of shift in product mix, discount levels, currency swings and hedges
We maintain our preference for 2 wheelers. We have BUY rating on BJAUT and ACCUMULATE rating on TTMT and AL. We maintain HOLD on TVSL, MM, EIM and REDUCE on MSIL and HMCL
