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Auto Components Industry
Major auto component firms are likely to invest Rs 25,000-30,000 crore in the next fiscal for capacity expansion and localisation, including electric vehicle (EV) parts, ratings firm ICRA said on Thursday. The sector is also expected to invest in capacity enhancements and upcoming regulatory changes. "ICRA's interaction with large auto component suppliers indicates that the industry is estimated to spend Rs 15,000-20,000 crore in FY2025 and another Rs 25,000-30,000 crore in FY2026," Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA Ltd said in a statement. The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes, she added. The rating agency said it expects the revenue growth of the Indian auto component industry (represented by a sample of 46 auto ancillaries with aggregate annual ..
Automotive component maker Belrise Industries has filed preliminary papers with capital markets regulator Sebi to raise Rs 2,150 crore through an initial public offering (IPO). The IPO is entirely a fresh issue of equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP). The company may consider raising up to Rs 430 crore through a pre-IPO placement. If this is carried out, the issue size will be reduced. As per the draft papers filed on Tuesday, the company intends to utilise proceeds worth Rs 1,618 crore for payment of debt. The company has a borrowing of Rs 2,463 crore in its books as of June 2024. Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles. As of June 2024, it marketed its products both domestically and internationally,
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 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 ..
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
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 ...
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 ...