Indian auto companies' earnings to improve on robust demand - ICICI

CIE Automotive India

12/10/2022 08:36

** Analysts at ICICI Securities expect earnings at auto
companies in their coverage to stabilize on robust demand after
three quarters of shrinking gross margin, according to a note
    ** Volumes for both personal mobility and commercial
vehicles held up nicely despite a seasonally weak monsoon
quarter, ICICI analyst Basudeb Banerjee says, while pointing to
two-wheelers volume declining sequentially
    ** ICICI expects profitability to improve from next quarter
onwards, helped in part by a decline in commodity prices, after
flattish sequential change for the second quarter
    ** ICICI's top picks are Tata Motors  TAMO.NS , TVS Motor
 TVSM.NS , Maruti Suzuki  MRTI.NS  and Ashok Leyland  ASOK.NS 
in the original equipment manufacturers (OEM) space and Mahindra
CIE  MAHN.NS  and Apollo Tyres  APLO.NS  in ancillaries
    ** Tata Motors expects to report earnings for its September
quarter on or before Nov. 15, while Maruti Suzuki is holding a
board meeting on Oct. 28 to approve its quarterly results
    ** As of last close, Nifty Auto Index  .NIFTYAUTO  up over
14% this year
 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))