Auto Sector Q1 Preview - Lockdown, Raw Material Inflation Dent Earnings: Prabhudas Lilladher

The bodywork of a M&M XUV 500 SUV moves along a conveyor on the production line at the company's facility in Chakan, Maharashtra. (Photographer: Udit Kulshrestha/Bloomberg).

Auto Sector Q1 Preview - Lockdown, Raw Material Inflation Dent Earnings: Prabhudas Lilladher

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Prabhudas Lilladher Report

Volumes impacted by intermittent lockdowns in Q1 FY22 wherein commercial vehicle segment was the worst affected across the pack with the volume decline of ~50% QoQ.

Two-wheeler and passenger vehicle volumes declined by 28% and 26% respectively.

We thus expect aggregate sales/Ebitda/profit after tax for original equipment manufacturers (excluding Jaguar Land Rover) to decline by 29%/40%/50% QOQ.

Higher raw material costs will further put pressure on the profitability. However, on YoY basis we expect the sales/Ebitda/profit after tax growth to be robust considering the lower base of last year.

Click on the attachment to read the full report:

Prabhudas Lilladher Automobiles Q1FY22 Earnings Preview.pdf

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