New Delhi: However, it pointed out that commodity pressures are likely to moderate margins in FY22 from previous year levels.
“The credit outlook on tractor industry remains ‘Stable’. Despite expectations of some margin pressure, the operating margins for most OEMs in the industry are expected to remain at healthy levels, with return indicators being robust. OEMs continue to focus on developing new application oriented products and are working on emission norm related product launches,” said Rohan Kanwar Gupta, Vice President, ICRA.
“In line with ICRA’s stable outlook on the industry, the credit profiles of OEMs are expected to remain healthy, supported by limited debt, healthy cash and liquid investments and limited investment plans.”
Besides, the rating agency expects a 1-4 per cent YoY growth in domestic tractor volumes in FY22.
