Auto, Auto Ancillary Q2 Preview - Weak Quarter Due To Input Cost Headwinds; Focus On Commentary: 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 Q2 FY22 earnings of auto and auto ancillary companies in our coverage universe to be relatively subdued due to sustained input cost headwinds.
We anticipate gross margin contraction of 80-140 basis points on a QoQ basis due to continued raw material cost pressure.
However, with most commodity costs showing signs of stabilising at the current level, we note that further impact on gross margins could be limited.
Ebitda margins should witness softer trends on YoY basis, but we see Ebitda margins improving on QoQ basis, driven by positive operating leverage, price hikes and tight cost controls across most companies.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.