Results preview: Ebitda margins of auto cos to take the wheel in Q4, again

Analysts indicate that in future, gross margins might come under pressure

Riding on the moderation in raw material cost and favourable forex, the automotive industry’s Ebitda margins are expected to improve in Q4FY23 for the fourth quarter in a row, analysts said.

Axis Securities analysts pointed out that they expected revenues, Ebitda (earnings before interest, taxes, depreciation, and amortisation) and profit after tax (PAT) to grow by 19 per cent, 29 per cent and 29 per cent, respectively, year-on-year (YoY) in the fourth quarter.

The fourth quarter of the 2023-34 fiscal witnessed a stable demand environment, though there were signs of volume growth 

moderation in some segments. “Demand largely remained intact for M&HCVs (medium