Auto component makers’ stocks gained as Crisil Ratings has said that automotive components makers in India are set to register 10-12 per cent growth in revenue during the financial year 2023-24 (FY24). It attributed the growth to continued domestic growth -- buoyed by robust demand from automobile manufacturers and aftersales demand from services.
It stated this is despite exports continuing to remain sluggish. Further, it noted moderation in prices of key raw materials will support their operating margin to reach the pre-pandemic levels of 12.0-12.5 per cent against 11.9 last year.
Anuj Sethi, Senior Director, CRISIL Ratings, said ‘Improving semi-conductor availability will support supplies of passenger vehicles and premium motorcycles. Exports, the second-largest revenue contributor, will remain sluggish amid continuing headwinds in key markets in Asia, Africa, and Latin America. Lastly, revenue from the aftermarket segment, which accounts for the balance, will grow at a steady 6-8 per cent, supported by strong automotive sales in past fiscals.’
