Commercial Vehicle Financiers - Structural Weakness Persists For FY22; Stay Selective: Prabhudas Lilladher
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Prabhudas Lilladher Report
Our extensive channel checks across first time buyers, small and large fleet operators and credit heads are suggestive of a bleak nine months FY22 for commercial vehicle financiers.
While lockdown impositions stand behind and collection efficiencies have picked up (average 90%), the repayment capabilities of driver/owner, small fleet operators continue to remain weak.
While festive season demand is building up, fleet operators expect mere 10-15% business growth uptick from current levels and the same is function of improved consumption trends.
Immediate concerns such as pandemic related uncertainties (third wave), operator’s viability and need to maintain higher on balance sheet liquidity would keep commercial vehicle financiers on guard.
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