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.
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