SENSEX
NIFTY 50
Hang Seng
Taiwan Weighted
MCX GOLD DEC 05
MCX SILVER DEC 05
USD/INR
EUR/INR80.0630

SENSEX
NIFTY 50
NIFTY MIDCAP 100
S&P BSE MIDCAP
Hang Seng
Taiwan Weighted
DAX
Nasdaq
MCX GOLD DEC 05
MCX SILVER DEC 05
MCX CRUDEOIL NOV 16
MCX NATURALGAS OCT 26
USD/INR
EUR/INR
GBP/INR
JPY/INR

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See recovery in auto ancillaries with 21-23% YoY growth: CRISIL

Updated : March 31, 2021 12:47 PM IST

CRISIL expects a rebound in the auto components sector after two tough fiscals.

“Clearly, there is a demand recovery that we are talking about, almost 21-23 percent year-on-year (YoY) growth over the last fiscal and two years we have seen an erosion in revenues almost 21-22 percent cumulative,” Hetal Gandhi, Director, CRISIL Research told CNBC-TV18.

She further added, “Utilisation levels for companies in this sector are expected to improve substantially. In fact, if you look at the lasted space and if you look at the top 100 players in the listed space your asset turnover ratios which had gone below 1 have improved above 1 in the third quarter of FY21 and that gives us enough confidence that you will see a continued rebound for the sector over the next 12-15 months.”

On price hikes, she said, “Component players, as well as automobile manufacturers, have passed on the complete price hike that gave them some respite despite being in a downturn for two consecutive years. Operating margins, therefore, is seeing almost 100-150 basis point improvement in next fiscal.”

“On that, we are expecting margins to improve by 100-150 basis points; the improvement is clearly driven by better utilisation levels,” she said.

Gandhi said she expected electric vehicles to have a 5-6 market by FY25.

Watch accompanying video for more.

Published : March 31, 2021 12:47 PM IST

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