On the back of buoyant sales major auto firms are expected to report a jump of around 40-50% in their net profit for the fourth quarter (January-March) period when they announce their earnings later this month. The auto sector results will kickstart from April 19 when the country?s largest two-wheeler manufacturer, Hero Honda Motors, will announce its earnings.
The quarter saw the country?s largest passenger carmaker Maruti joining the select list of major global auto companies to sell more than 1 million units in a year. Auto analysts see steady growth for the company ahead. Kaushal Maru, auto analyst, Religare Capital Markets, said, ?We see Maruti?s Ebitda margins to be around 13.8% in Q4.?
According to Ashish Kapoor, CEO Invest Shoppe, ?The growth in sales for Maruti will be in the range of 15% and bottomline will grow by 11%.?
Tata Motors is set to outperform other auto majors with auto analysts projecting its net profits to rise over four times in Q4 period. According to Vaishali Jajoo, auto analyst, Angel Broking the growth in Tata Motors net profits would be over 430%.
In the two-wheeler segment, backed by a series of new launches and an increasing rural demand Invest Shoppe has projected Bajaj Auto?s net profit to double in the Q4 period compared to the same period a year back.
?Bajaj Auto had a difficult time last year?however, now they are taking hard decisions which are set to boost its revenues,? said Kapoor. According to him, the topline growth of Bajaj would be around 35% during the period.
Jajoo said the overall two-wheeler segment witnessed higher numbers in January-March 2010 with consumers advancing their purchase decision since it was widely expected that the excise duties would be hiked in the Budget.
According to Kapoor, Hero Honda Motors net profit is expected to increase by 38% and total sales by 18% against the same period in the last fiscal.
According to Jajoo, ?Rural market sales for two wheelers arising out of relevant rural population is expected to help the segment maintain growth momentum and register around 9% CAGR in volumes over the next two years?. Guarav Dua of Sharekhan Securities said that the overall net profit growth of most auto companies would be in the range of 15-20%.