new delhi rise in commodity prices and sharp depreciation in the rupee will impact margins said credit rating agency icra however the rating agency has a stable outlook as domestic auto components industry is riding on strong oe demand which continues to drive healthy revenue growth in the current fiscal which along with improved realization and content per vehicle will translate into healthy 1213 revenue growth their operating margins are expected to remain range bound in 135145 range over the medium term despite some pressure in the current fiscal fy2019 the industry has been witnessing a robust demand over the last 23 years the demand has been supported by higher systemic capacity utilisation which along with favourable demand prospects over the medium term has triggered capacity expansion announcements by several ancillaries advt accordingly the auto components industry extyres is likely to sustain its capex investments at 67 of operating income over the next two fiscals and will subsequently taper down once new capacity become operational nevertheless icra notes that given the strong accruals industrywide credit profile is expected to be stable over the next three yearsicra expects some consolidation in the component industry as players gear up to tackle challenges emanating from rapidly evolving technology and shorter vehicle shelflife with enhanced active and passive safety requirements tighter emission control norms and advanced driver assistance and infotainment requirements electrical content in vehicles is set to increase this could trigger higher imports for a while until local investments are made to indigenize the technology etauto published on dec 13 2018 at 0201 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app auto components commodity prices icra auto component industry raw materials indian rupee homenewsauto componentsrise in commodity prices puts auto components inc margins under pressure icra