Auto-Ancillary Sector Q3 Earnings Preview: Strong Demand Recovery To Drive Results, Says Nirmal Bang
A worker assembles a mold at the Motherson Sumi Systems Ltd. injection molding plant in Noida, India. (Photographer: Brent Lewin/Bloomberg)  

Auto-Ancillary Sector Q3 Earnings Preview: Strong Demand Recovery To Drive Results, Says Nirmal Bang

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We expect Q3 FY21 earnings of auto and auto ancillary companies to witness strong YoY growth, driven by V-shape recovery across segments and leaner cost of operations due to cost-cutting measures.

Pent-up demand, increased preference for personal mobility and strong rural sentiments have helped revive the sector.

Tight cost controls and operating leverage benefits are likely to drive Ebitda margins.

However, commodity prices have seen a sharp increase during the quarter and will remain a headwind going forward.

Click on the attachment to read the full report:

Nirmal Bang Automobile-Automobile Ancillary Sectors -Q3FY21 Result Preview-6 January 2021.pdf

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