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Chip Shortage To Clip 400-600bps Off Passenger Vehicle Recovery

The global shortage of semiconductors with moderate India’s Passenger Vehicle sales to 11-13% this fiscal, around 400-600bps lower than normal levels.

  • Preference for personal mobility has risen, leading to more-than-expected demand for PVs.
  • Consumers also preferring vehicles with more electronics-driven features or a higher semiconductor quotient.
  • The upshot of the chip shortage has been PV production cuts, which will have a bearing on the festive sales.
  • Foresee tempered overall growth for PVs this fiscal

Source: CRISIL Ratings Analysis

Canara Bank Q2 Slips After Reporting Q2 Numbers

Shares of Canara Bank Ltd. shed over 3.7% in intraday trade to Rs 194.4 apiece, after the company reported second quarter numbers today.

September Quarter Results (Consolidated)

  • Net income at Rs 1,100.59 crore vs Rs 465.58 crore YoY (Bloomberg Consensus estimate: Rs 1,310 crore)
  • Interest income at Rs 17,336.33 vs Rs 13,097.99 crore YoY
  • Interest expense at Rs 10,791.47 crore vs Rs 11,387.63 crore YoY
  • Gross NPA at 8.42% vs 8.50 QoQ

Of the 16 analysts tracking the company, 11 maintained ‘buy’, two maintained ‘hold’ and three maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of over 9%.