SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Performance of auto component makers likely to remain subdued in Q2FY21: ICRA

09 Oct 2020 Evaluate

Rating agency ICRA in its latest report has said that the performance of auto component makers is likely to remain subdued in Q2 (July-September) of FY21 over the year-ago period, but may witness significant improvement on a sequential basis. For 2020-21, it expects the revenue of auto ancillaries, except tyre segment, to fall by 16-20 percent following the double-digit decline during FY20.

According to the report, tyre manufacturers are expected to perform better, with revenue decline likely to be in the high single-digit. It also said the auto component industry was already impacted by muted demand in FY20, with the industry witnessing 16 months of decline in volumes pre-COVID and was aggravated following the pandemic. However, going forward, it said the industry is expected to register strong growth in FY22, which will result in improved profitability and coverage indicators for most vendors. It noted that during the period FY 2014-19, most auto ancillaries have ploughed back their accruals to deleverage their balance sheet.

ICRA further said that 28 percent of its rated auto component portfolio had availed moratorium, and the need for restructuring will be limited despite eligibility. It has indicated that about 28 percent of its auto component portfolio has availed of the moratorium. Of this, it said 72 percent of the entities that availed moratorium are rated in the investment-grade (BBB category and above). It added that they have availed moratorium primarily to conserve cash in an uncertain environment.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: