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The covid-19 pandemic may not be a hurdle for auto parts manufacturing companies as the sector may see a rebound in its fortunes in FY22.
A revival is likely after two years of double-digit decline in net profit and revenues amid an economic slump and a disruption in operations amid the outbreak of covid
Several auto parts manufacturers suffered losses in the first two quarters of the current fiscal as the lockdown shut factories, leading to an economic recession.
Credit ratings firm Crisil expects the component manufacturing sector's revenues to grow 21-23% in FY22 and post higher operating margins.
The growth in top line, apart from the cost cutting measures already adopted, will lead to better operating profits, Crisil said