he September quarter is likely to be a dismal one for auto and auto ancillary companies. Initial projections show at least a dozen companies are set to log up to 97 per cent year-on-year (YoY) plunge in profit growth, while two others may report losses for the challenging quarter that saw semiconductor shortage cut output.
Analysts said semiconductor shortage hurt supplies for personal vehicles, premium two-wheelers and light commercial vehicles (LCVs), which will potentially impact sales in the forthcoming festive season.
Among auto ancillaries, CEAT is projected to log 72.6 per cent YoY plunge in profit at Rs 49.90 crore for the September quarter. Amara Raja is likely to clock a 27.2 per cent YoY fall in profit at Rs 146.6 crore. Motherson Sumi is seen reporting 39.6 per ent decline in profit at Rs 224.70 crore.
Emkay Global’s projections, too estimate a fall in bottomline growth across the sector. It sees Tata Motors’ losses at Rs 4,415.80 rore and that of Ashok Leyland at Rs 108.20 crore. It sees Maruti’s profit falling 50 per cent to Rs 687.60 crore. Motherson Sumi, Apollo Tyres, Amara Raja, Exide Industries, Minda Industries are also seen reporting up to 97 per cent drop in profits, Emkay projections suggest.