The automotive (auto) components sector to see healthy double-digit revenue growth this fiscal
Revenue from original equipment manufacturers (OEMs) to grow 12-14%, supported by demand from the passenger vehicle (PV) and commercial vehicle (CV) segments
Exports to be affected by global headwinds, to grow 6-8%
Steady growth of 6-8% in the replacement market
Operating margin to increase 50 basis points (bps)
Higher realisations because of better product mix, moderation in input prices and cost-efficiency measures to support profitability
Credit outlook ‘Stable’; capital expenditure (capex) to increase (including under the Production-linked Incentive [PLI] scheme)
Capex spending will increase, in line with OEM capex
Acquisitions gaining momentum, with focus on product diversity, technology and customer acquisition
Better cash generation, strong balance sheets and superior liquidity will keep debt metrics healthy
Key monitorables
Movement in commodity prices
Global macroeconomic developments
Ability to indigenise electric vehicle (EV) components
Analytica