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For MSIL, share of UVs in total domestic volumes was at 18.2% in H1FY21 vs. 16.6% in FY20. Despite improvement in category mix, however, the company's UV market share has reduced from 24.9% as of FY20 to 22.9% as of H1FY21. Its chief offerings in the category i.e. Brezza, Ertiga, XL6 are witnessing intense competition from the likes of Venue, Nexon, Seltos, Creta and Hector (Exhibit 7). MSIL's commentary suggests that demand for PC category is higher vis--vis UV (i.e. downtrading) post Covid. This could lead...

Maruti (MSIL) reported in-line Q2FY21 earnings of Rs 13.7bn.

Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...

M&M;'s (MM) Q1FY21 revenues dropped 56% YoY to Rs 56bn, EBITDA declined 68% to Rs 5.7bn and PAT nosedived 96% to Rs 389mn.

Margin trajectory is seen improving, going forward. Courtesy its early switchover to BS-VI norms and demonstrated acceptance for those products, pricing environment is largely stable for the company. The management said discounting levels are lower QoQ thus far, and thus would support gross margins. Also, enhanced focus on cost controls (material and...

performance on all fronts during 2QFY20. The reported profit jumped by 21% YoY to Rs2,550mn levels and could be considered as a one-off. The management claims demand recovery, but looks on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better unsustainable as discretionary spends majorly depend on how Covid situation evolves, which...

Best case estimates peg lower double digit decline in FY20! Covid-19 is a black swan event, which has brought the entire economy to a standstill. It was a further blow to the automobile sector, which was already struggling with weak consumer sentiment with domestic sales volume down 18% YoY in FY20. With movement of people highly restricted as well as income levels taking a hit, car purchase as a discretionary spend is expected to take a backseat. A caveat, however, is the initial signs of people traversing from shared mobility/public transport to personal mobility. However, there...

Mahindra & Mahindra Limited operates in nine segments. The automotive segment includes sales of automobiles, spare parts and related services. Farm equipment segment includes sales of tractors, spare parts and related services; information technology (IT) services, which consists of services rendered for IT and telecom; financial services includes services relating to financing, leasing and hire purchase of automobiles and tractors; steel trading and processing includes trading and processing of steel; infrastructure includes...

Early BS-VI adoption to place MSIL in good stead! MSIL has been at the forefront of BS-VI transition in the PV space, with recent additions (Celerio, Eeco, Ciaz) taking the BS-VI model count to 11 (only Brezza, S-Cross, Ignis to go). Sales volumes of new emission norms compliant variants has crossed the 5 lakh unit mark, forming ~75% of total petrol vehicles sold YTD. Given its fast-tracked BS-VI adoption and no signs of any adverse market impact to the new vehicles (MSIL Q3FY20 domestic volumes up 0.3% YoY vs. 0.5% YoY decline for industry), the company is...

In Q2FY20 Tata Motors Limited (TML) posted consolidated revenue of Rs. 65,432 cr (down 9.2% YoY) on continued weaker sales volume. TML standalone revenue dropped by 44% YoY while revenue from Jaguar Land Rover (JLR) recorded decent growth of 7% YoY. Retail sales in china was the main driver of growth for JLR as it increased 24.3% YoY...