Auto component industry revenues to grow by 20-23 pc in FY22: Icra

| | New Delhi
  • 0

Auto component industry revenues to grow by 20-23 pc in FY22: Icra

Tuesday, 27 July 2021 | PTI | New Delhi

Indian auto component industry is expected to post 20-23 per cent revenue growth in the current fiscal aided by strong exports and recovery in the domestic market, as per rating agency Icra.

 The growth would however be on the low base of the last two fiscals and will look optically strong because of the exceptionally weak first half of the financial year 2020-21.

 “For the full year FY2022, we expect a revenue growth of 20-23 per cent aided by growth across segments and commodity pass through, albeit on a low base.”

 “However, headwinds such as sharp increase in commodity prices, supply chain disruptions partly arising from semiconductor shortage and premium freight expenses are expected to weigh in industry margins in FY2022, partially offsetting benefits arising from improved operating leverage,” Icra Vice President and Sector Head Ashish Modani said in a statement.

 The rating agency noted that commodity prices were expected to

remain at a multi-year high in the first half of the financial year 2021-22 before softening in the second half of the financial year.An increase in air freighting, resulting in higher freight costs for the industry, also remains a challenge, it added. “Despite the strong revenue growth and consequent benefits from operating leverage expected, these headwinds are expected to weigh in on margins,” Icra said.

State Editions

LG informs president Murmu of Atishi oath

19 September 2024 | Staff Reporter | Delhi

Delhi records 2,170 arms act cases in 2024

19 September 2024 | Staff Reporter | Delhi

North Delhi Medical College holds convocation ceremony

19 September 2024 | Staff Reporter | Delhi

Two cousins drowned in Yamuna during Ganpati immersion

19 September 2024 | Staff Reporter | Delhi

Sunday Edition

Paris Paralympics Para athletes bask in glory and gold

15 September 2024 | Rishabh Malik | Agenda

DUBLIN'S HIDDEN GEM

15 September 2024 | AKANKSHA DEAN | Agenda

From wheels to wings

15 September 2024 | Gyaneshwar Dayal | Agenda

We hope to instil a respect for our heritage:Tarun Thakral

15 September 2024 | Pioneer | Agenda

The Monsoon’s Whisper in Every Note

15 September 2024 | SAKSHI PRIYA | Agenda