Auto Components Industry

Sona BLW: Why Nomura thinks auto component firm may surpass industry growth

The electric vehicle (EV) revenue accounted for 33% of total revenue. The company's order book expanded to Rs 23,300 crore in Q1FY25, from Rs 22,600 crore in Q4FY24.

Indian auto component industry growth to moderate in FY25, says ICRA

ICRA also expects the industry to invest Rs 20,000-25,000 crore in FY2025 for capacity expansion and technological advancements

Auto component industry to see moderate growth this fiscal: ICRA

The Red Sea crisis is likely to impact the margins of the auto component industry over the next few quarters amid higher container rates and shipping time, credit ratings agency ICRA said on Thursday, projecting a moderate growth for the industry this fiscal. Close to two-thirds of the auto component exports are made to North America and Europe, and one-third of the imports is made from these regions, as per the ratings agency. "The disruption along the Red Sea route has resulted in a surge in container rates by 2-3 times in YTD (year-to-date) this calendar year compared to CY2023, while shipping time has also increased by around two weeks," ICRA said. The operating margins are set for a year-on-year improvement of around 50 basis-points in FY2025, benefitting from better operating leverage, higher content per vehicle, and value additions, while remaining exposed to any sharp volatility in commodity prices and foreign exchange rates, it said. Also, the industry's liquidity position

Auto component maker SAMIL raises $350 mn through issuance of notes

Auto components maker Samvardhana Motherson International Ltd on Friday said it has raised USD 350 million (around Rs 2,920 crore) through the issuance of notes. The notes were issued by the step-down subsidiary, SMRC Automotive Holdings Netherlands BV (SAHN BV) backed by a corporate guarantee from Samvardhana Motherson International Ltd (SAMIL), the company said in a statement. The issue was oversubscribed six times with a peak order book in excess of USD 2.2 billion, it added. "The fund raised by way of issuance of notes marks return of the Motherson Group after 8 years to USD bond market and first-ever with a dual investment grade rating from two reputed international credit rating agencies -- Moody's and Fitch," SAMIL said. The issuance is debt neutral as proceeds from the same will be utilised to repay existing debt. The notes shall be listed on the Frankfurt Stock Exchange, it added. "The success of this transaction is a testament to the Motherson Group's adherence to its ..

Samvardhana Motherson gains 4% on Moody's rating upgrade; Outlook 'stable'

The auto components manufacturer's stock price jumped after Moody's Rating upgraded the credit rating of SAMIL and Samvardhana Motherson Automotive Systems Group B.V (SMRP B.V)

Motherson Sumi Wiring Q4 results: Net profit rises 38% to Rs 191.44 cr

Auto components maker Motherson Sumi Wiring India Ltd on Thursday reported a 38.3 per cent rise in net profit to Rs 191.44 crore in the fourth quarter ended March 2024. The company had posted a net profit of Rs 138.47 crore in the same quarter a year ago, Motherson Sumi Wiring India said in a regulatory filing. Consolidated total revenue from operations in the quarter under review was Rs 2,232.67 crore as against Rs 1,871.96 crore in the corresponding period previous fiscal, it added. Total expenses in the fourth quarter were higher at Rs 1,986.54 crore as compared to Rs 1,698.5 crore in the same period a year ago. The board has recommended a dividend of 80 paise per equity share of face value Re 1 for the financial year ended March 31, 2024, subject to approval of the shareholders at the ensuing annual general meeting, it added. For the fiscal ended March 31, 2024, net profit was Rs 638.3 crore over Rs 487.04 crore in the preceding year, the company said. In FY24, consolidated t

CV growth worries, sustainable margin gains key concerns for Bosch

While localisation efforts and margin improvement are medium-term positives, the immediate trigger is the healthy Q3 show

Bharat Forge Q3 results: PAT rises 31% to Rs 378 cr, revenue at Rs 2,263 cr

Auto components major Bharat Forge on Monday said its profit after tax increased by 31 per cent to Rs 378 crore for the third quarter ended on December 31, 2023. The company had reported a profit after tax (PAT) of Rs 289 crore in the October-December period of last fiscal. Total revenue rose to Rs 2,263 crore for the period under review as against Rs 1,952 crore in the year-ago period, Bharat Forge said in a regulatory filing. "Looking ahead in the Q4 & further into FY25, we expect the growth momentum to moderate in both Domestic & Export market across industries," Bharat Forge Chairman & Managing Director BN Kalyani said. The company's endeavour will be to outperform the market driven by its diversified business mix, he added. The company said its board has accorded in-principal approval to raise funds not exceeding Rs 500 crore through term loan, non-convertible debentures or any other debt instruments. Shares of Bharat Forge on Monday declined 14.04 per cent to Rs ...

Auto component industry's total sales grow 12.6% in first half of FY24

Sales jumped by 34.8 per cent Y-o-Y to $33.9 billion

Steel Strips hits new high, up 5% on record net turnover in September

SSWL expects a sharp pull back of export demand with alloy exports being the key factor for Financial year 2023-24.

Micron set to break ground for Sanand semiconductor plant on Saturday

A few months ago, Micron acquired 10 acres of land, a building and a factory from a troubled auto components maker

Domestic auto component industry reports highest turnover in FY23

The domestic auto component industry expects to log in double-digit sales growth in the current fiscal after having reported its highest-ever turnover in 2022-23, as demand is expected to remain robust. As per the Automotive Component Manufacturers Association (ACMA), the sector reported a turnover of Rs 5.6 lakh crore last fiscal, registering a growth of 33 per cent over Rs 4.2 lakh crore in 2021-22. In 2022-23, exports grew by 5 per cent to Rs 1.61 lakh crore while imports grew by 11 per cent to Rs. 1.63 lakh crore, it added. The aftermarket, estimated at Rs 85,333 crore also witnessed a steady growth of 15 per cent while component sales to OEMs in the domestic market grew by 39.5 per cent to Rs 4.76 lakh crore, ACMA said. "With significant mitigation in the supply-side issues of availability of semiconductors, input raw-material costs and logistics, the vehicle industry is expected to continue to perform well in FY24, which augurs well for the auto components sector," ACMA ...

Lumax Auto soars 12% as it acquires majority stake in IAC Group's India biz

IAC India is a well-established Tier-1 interior systems and components supplier to key automotive OEMs in India including Mahindra, Maruti Suzuki, Volkswagen and Volvo Eicher Commercial Vehicles.

Lenders select Ramkrishna Forgings resolution plan for ailing JMT Auto

Auto component manufacturing company undergoing insolvency proceedings

New regulations to benefit Indian auto component manufacturers: Report

The new rules and trends are increasing the need for content per vehicle and this, in turn, is helping companies boost their revenue and profits

Bosch, Uno Minda: Analysts bet on airbag makers on govt push for car safety

Implementation of airbags in other vehicle segments over the medium term will offer further revenue upside for airbag manufacturers, as per rating agency ICRA

Domestic auto parts makers benefit from supply disruptions from China

While they have not been able to make a huge dent globally, their operations have grown with OEMs in India beginning to lean on them more heavily for supplies

Craftsman Automation soars 9%; hits record high on acquisition of DR Axion

The company and DRAIPL both operate in the auto components space and have strengths in complementary areas. The acquisition will help both entities leverage their strengths and build better synergies.

Severity of injuries worst among auto workers in Pune, shows SII report

Nearly 83 per cent incidents in Pune reported a loss of body part of the worker, as compared to 67 per cent in Haryana (Gurugram and Faridabad)

What does ACMA President Sunjay Kapur think of localisation?

Business Standard's S Dinakar caught up with Sunjay Kapur, the president of the Automotive Component Manufacturers Association of India, to know how the sector is performing and more