Auto sector in Q2 sees better profitability led by raw material savings and cost efficiency, 2HFY24 to be better
Motilal Oswal Financial Services reported in its Q2 results review report that margin tailwinds contributed to a broad outperformance across aggregates that marked the end of the 2QFY24 corporate earnings on a positive note. The beat was driven by domestic cyclical like cement, automobiles, banking, financial services, and insurance (BFSI).
The auto industry saw a noteworthy year-on-year (YoY) growth of 112% (compared to an expected growth of +87%), led by Mahindra & Mahindra (M&M), Maruti Suzuki, and Tata Motors. Also Read: M&M’s strong Q2 results get thumbs up from analysts; should you buy the stock? “The quarter saw upgrades for FY24E, mainly to incorporate the advantages of improved gross margin and cost efficiencies, which ultimately supported overall profitability," the brokerage said.
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