Indian Auto Earnings Forecasts Show Strong Two-Wheeler Growth
What happened
Analysts project that two-wheeler manufacturers will lead earnings growth among Indian automakers in the September quarter. Jefferies expects pre-exceptional profit before tax (PBT) for TVS Motor Company to rise 45% year-on-year, followed by 26% for Bajaj Auto and 14% for Eicher Motors.
From indiagazette.com
Why it matters
The demand boost following Goods and Services Tax (GST) changes supported double-digit wholesale volume growth across most vehicle categories. However, higher commodity costs are expected to weigh on profitability, causing aggregate EBITDA margins to contract despite a 27% year-on-year increase in aggregate revenue.
Auto companies, including TVS Motor, Bajaj Auto, Eicher Motors, and Exide Industries, are benefiting from a sector-wide rally amid geopolitical tensions and rising oil costs linked to the Middle East conflict.
From indiagazette.com
Who's involved
- Eicher MotorsIndian automaker company expected to see a 14% rise in PBT.
- Bajaj AutoIndian two-wheeler and three-wheeler manufacturing company expected to see a 26% rise in PBT.
- TVS Motor Company2- and 3-wheeler manufacturer expected to see a 45% rise in PBT.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Eicher MotorsSpeculative
Eicher Motors might see increased demand for its two-wheeler products due to the segment's strong outlook.
- Bajaj AutoSpeculative
Bajaj Auto could experience increased sales volume in the two-wheeler segment.
- TVS Motor CompanySpeculative
TVS Motor Company may see revenue growth supported by the projected rise in profit before tax.
Keep exploring
The entities involved
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Eicher Motors
Indian automaker company rq
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Bajaj Auto
Indian two-wheeler and three-wheeler manufacturing company
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TVS Motor Company
2- and 3-wheeler manufacturer from Chennai, India