Fall in demand for auto parts firms in July-Sept
December 29, 2009 8:39 am
A recent trend in weak exports has partly offset domestic market recovery, with the result that India’s auto parts firms have reported mixed earnings in July-Sept. Firms with sizeable exports exposure may show less export volumes following the decline in demand from developed countries due to the economic slowdown, according to analysts.
Motherson Sumi and Amtek Auto are likely to report drop in quarterly profits, while Bharat Forge may report a sharp rise. Although global recession had affected the Indian auto components industry, it is slowly coming back on track. There has been an increase in production schedules at auto component firms post-March quarter, following two stimulus packages and substantial improvement in the volumes of auto companies.
Bharat Forge, India’s top forgings maker from Pune, is expected to see higher profits on account of reduced forex losses due to a one-time forex loss of Rs 87.5 crore a year ago.
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