Earnings recovery in sight for Indian automakers after five quarters of sluggish growth

Indian automakers are expected to post double-digit profit growth in Q2, following five quarters of muted performance, buoyed by strong demand for two-wheelers and tractors. Export volumes and favourable forex rates add to optimism while passenger vehicles remain challenged by supply issues. Brokerages forecast 10-17% revenue growth and about 15% profit rise for the quarter. Analysts say the recovery may pick up in the December quarter as tax cuts and festive demand kick in.