Auto Sector Q3 Earnings Preview: Beyond The Festive Season: Recovery Sustains, Says HDFC Securities
Traffic drives through a road in Chennai, Tamil Nadu, India. (Photographer Prashanth Vishwanathan/Bloomberg)

Auto Sector Q3 Earnings Preview: Beyond The Festive Season: Recovery Sustains, Says HDFC Securities

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.

HDFC Securities Report

The demand for automobiles has been resilient even post the traditional festive season.

Sales for passenger vehicles and tractors continue to grow in healthy double digits and we expect this trend to sustain.

As the country emerges from Covid-19 (with vaccine rollout expected shortly), the economic recovery will further benefit auto sales, in our view. We expect margins to be range-bound (versus Q2 FY21).

While the utilisation levels are elevated (car, tractor utilisation is upwards of 80%) and discounts are lower, commodity prices have risen sharply over the past quarter.

Click on the attachment to read the full report:

HDFC Securities Autos - Q3FY21 Results Preview .pdf

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