Q4 Results Preview: Auto companies to post stronger earnings led by PV, 2W/3W; TVS Motors, Tata Motors to lead the pack

livemint.com:

Q4 results preview: From Maruti Suzuki to Grasim, 5 stocks are likely to post 45% rise in YoY net profit According to the brokerage firm report, 2W production to surge 3% quarter-to-quarter (QoQ) (+29% YoY) and PV production by 20% QoQ (+12% YoY). Also, MHCV production may likely improve 4% QoQ (-11% YoY). In 4QFY24, 2W industry volume expanded by ~26% YoY, on the back of consistent demand in domestic market as well as recovery in international markets.

The PV industry registered a growth of 13% year-on-year (YoY) mainly due to consistent saliency in SUVs. “Expect ASPsto improve QoQ sharply for Bajaj Auto, Hero MotoCorp and Eicher Motors led by enhancing product and export mix. However, in Bajaj’s case the impact of higher ASPs on a QoQ basis will be partially offset by higher EV volumes which is margin dilutive.

MSIL’s margin may see a sharp 140bps QoQ improvement led by operating leverage," the report added. Also read: Banking sector Q4 preview: PSU Banks to continue to post better earnings growth than private banks, says Elara The month of March was a mixed bag for the auto sector as 2Ws like Bajaj and TVS have excelled, while Hero has underperformed despite being in the same sector. the month of March was a mixed bag for the auto sector as 2Ws like Bajaj and TVS have excelled, while Hero has underperformed despite being in the same sector.

On the other hand, MSIL has posted growth of 10 per cent, while M&M’s Auto segment has posted 3.5 per cent growth. Tractors have fallen by and large around 20 per cent average, while CVs have fallen around 6-11 per cent. Exports seem to have bounced back in March with a strong 40 per cent and 25 per cent growth for Bajaj and TVS 2Ws respectively, as per Auto-roundup report by