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Top / Sun, 14 Jul 2024 Business Standard

Two-wheeler volume growth likely to drive profit for auto sector in Q1

Analysts predict auto original equipment makers (OEMs) to post 10 per cent volume growth during the quarter, led primarily by two-wheelers. Representative PictureDuring the first quarter of the financial year (FY25), retail growth lagged wholesales, and analysts see original equipment makers (OEMs) posting 10 per cent volume growth, led mainly by two-wheelers. Around 9-10 per cent revenue growth is estimated, with 14-17 per cent growth in earnings before interest, taxes, depreciation and amortisation (Ebitda). Profit after tax growth is expected in the range of 18 per cent during Q1. Motilal Oswal analysts noted that automobile OEMs overall are expected to post a 10 per cent year-on-year (Y-o-Y) growth.

Analysts predict auto original equipment makers (OEMs) to post 10 per cent volume growth during the quarter, led primarily by two-wheelers. Representative Picture

During the first quarter of the financial year (FY25), retail growth lagged wholesales, and analysts see original equipment makers (OEMs) posting 10 per cent volume growth, led mainly by two-wheelers.

Around 9-10 per cent revenue growth is estimated, with 14-17 per cent growth in earnings before interest, taxes, depreciation and amortisation (Ebitda). Profit after tax growth is expected in the range of 18 per cent during Q1.

Motilal Oswal analysts noted that automobile OEMs overall are expected to post a 10 per cent year-on-year (Y-o-Y) growth.

Two wheelers are set to grow by 11 per cent, followed by passenger vehicles

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