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Icra expects India’s tyre demand to grow 7-9% between FY'19-FY'23

Auto News - Published on Mon, 15 Apr 2019

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Economic Times reported that domestic tyre demand is expected to grow in the range of 7-9 per cent over the five year period between 2018-19 to 2022-23, rating agency Icra said that the market would also continue to witness investments over the period of next three years. ICRA Vice President and Co-Head, Corporate Ratings K Srikumar said in a statement that "Icra expects the domestic tyre demand to grow by 7-9 over the next five years (2018-19 to 2022-23).” He added that with a stable demand outlook and strong credit profile, the domestic tyre makers will continue to invest in capacities.

Mr Srikumar said that "Based on announcements, the industry is likely to witness a capacity addition of over INR 20,000 crore in the next three years.” He added that the revenue growth for tyre industry is pegged at 14-15 per cent for 2018-19, with operating margin and net margin of 14 per cent and 7 per cent, respectively, almost in line with 2017-18.

Mr Srikumar said that "For 2019-20 to 2021-22, revenue growth is projected at 9-10 per cent with operating and net margins at 14-15 per cent and 6-7 per cent, respectively.”

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Posted By : Rabi Wangkhem on Mon, 15 Apr 2019
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