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Automobiles sector results preview for Q3FY12: PINC

PINC Research has come with its quarterly earning estimates for automobiles sector.

January 10, 2012 / 11:03 AM IST
 
 
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PINC Research has come with its December quarterly earning estimates for automobiles sector.

PINC Research earning estimates:

  • Hero MotoCorp posted its highest ever quarterly volumes (up 2.9% QoQ) even as competitors Bajaj Auto and TVS Motor showed fatigue with volumes declining 7.6% and 12.3% QoQ respectively.
  • The price hikes undertaken by manufacturers would enable them to maintain margins on a QoQ basis. Bajaj Auto's profitability is expected to get a 30bps QoQ boost due to the appreciating dollar.
  • Maruti Suzuki had another dreadful quarter as labour unrest during Oct'11 hampered production leading to a 28% YoY decline in volumes. Despite a richer product mix, we expect margins to be impacted by the Yen appreciation vis-vis INR. Profits expected to half to Rs 2.7 billion.
  • Ashok Leyland margins are expected to contract 70bps QoQ as the product mix has been diluted with the launch of the SCV 'Dost'. Profit is expected to decline 27% YoY to Rs1.1bn.
  • M&M automotive and tractor volumes on a YoY basis grew 31.3% and 24% respectively. We expect QoQ margin expansion owing to price hikes undertaken and higher operating leverage.
  • Sona Koyo is expected to report a modest 5% growth in topline as volume decline at principal client Maruti Suzuki is compensated by other OEMs. Margins expected to contract 30bps QoQ due to the impact of Yen appreciation.
  • Apollo Tyres consolidated profit is expected to grow 78.1% QoQ as its European subsidiary which specializes in winter tyres has its peak season.

CompanyRevenuePATReco
Rs mnQoQ%YoY%Rs mnQoQ%YoY%
Bajaj Auto49,414-6.218.37,815-1.217.2BUY
Hero Motocorp60,604417.46,1902.627.7ACCU.
TVS Motor17,707-11.17.5549-28.2-1.5BUY
Ashok Leyland28,325-8.527.21,120-27.3158.2BUY
M&M83,00112.835.66,584-10.76.7BUY
Maruti Suzuki76,314-2.6-19.62,71713-51.9ACCU.
Apollo Tyres30,6576.829.41,39278.115.2ACCU.
Sona Koyo2,8715.45.27814.7-10.9BUY

 

 

 

 

 

* ACCU. = Accumulate

 

 

 

 

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