scorecardresearchAuto Q2 Preview: Double-digit volume growth & festive demand may boost the margins of auto firms

Auto Q2 Preview: Double-digit volume growth & festive demand may boost the margins of auto firms

Updated: 14 Oct 2022, 10:44 AM IST
TL;DR.
The prices of major commodities such as aluminium, steel, and precious metals have corrected over the quarter, which will positively impact the gross margins of auto OEMs and ancillaries.
For H2FY23, Axis Securities maintains a positive outlook for the sector and expects gross margins to expand, driven by higher operating leverage, easing chip supply, and RM tailwinds with commodity prices correcting.

For H2FY23, Axis Securities maintains a positive outlook for the sector and expects gross margins to expand, driven by higher operating leverage, easing chip supply, and RM tailwinds with commodity prices correcting.