infotonic

  On The Route To Unstoppable Growth As per changing dynamics in global geopolitics and economics, one of the key growth drivers for the Indian tyre industry would be the recently levied antidumping duty on China products in USA and other developed markets The road transport and automobile industry are critical for the Indian economy. However, on the Indian terrain, there are only few that last long. Due to diversity of the weather, temperature, and geographic variations, the challenges posed by road network are many. Pacing with major part of the economy on its back is the Indian tyre industry. Like the challenges posed by the country’s terrain, the sector has recently fought hard against unprecedented challenges posed by the pandemic and global uncertainties and have navigated through rocky roads and pits, sand and rain-washed slopes to script a strong recovery. In fact, rating agency ICRA estimates a 13 to 15% volume demand growth in FY2022.  JK Tyre – An Unmatched Growth S...

Q4FY22 earnings are likely to moderate AT 12% YoY; this will be a SEVEN-QUARTER LOW.   The reason for moderation w ould be commodities, reconciling its divergence with overall aggregate. While Banks, exporters (chemicals, IT) and consumer services are likely to report strong earnings, however, consumer companies are likely to remain muted, largely due to soft demand. There are more adverse macro and fading tailwinds of global reflation, market share gains and lower credit costs pose downside risk to estimates of FY23. Demand – rather than margins – looks more vulnerable.  Earnings growth moderates  1. Led by commodities… Earnings growth is likely to moderate in Q4FY22 to 12% YoY for our coverage universe. The moderation is likely to be mainly led by commodities (key earnings driver so far), while the uptick in rest is not material enough to offset commodity slowdown.  In non-commodities, unlocking has propelled consumer services’ profits. Exporters (chemicals, I...