Auto ancillary sector anticipates a turnaround following the cooling of global metal prices
The market leader in manufacturing automotive components with more than three decades of operational experience, Lumax Auto Technologies received a nod from its board for INR 400 crore fundraising.
The company's profit escalated by 431% Y-o-Y to INR 26 crore for the quarter that ended June FY23 on a low base, but there was a significant increase in input cost. However, revenue grew by 62% Y-o-Y to INR 421.93 crore during the same quarter.
The company stated that the board of directors had approved raising funds to INR 400 crore by issuance of securities.
The market participants are placing bets on some beneficiaries at a time when metal prices have started to decline.
Some industry experts believe that the auto ancillaries, engineering, capital goods, and infrastructure sectors, among others, are in recovery mode now that global metal prices, including those for aluminium, copper, and steel, have recently levelled off.
Recently, a market expert proposed that intermediate metal users stand to gain from the decline in metal prices.
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