Consumer Durables Q2 Earnings Review - Demand To Pick Up With Improvement In Consumer Sentiment: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.In Q2 FY23, fast moving electrical goods sector was affected by inflationary pressures as well as subdued consumer sentiment. Margins of most companies were lower than our and consensus estimates, hit mainly due to full absorption of high cost inventory. Category-wise performance in Q2 FY23 is as follows-During Q2 FY23, most companies exhibited double digit revenue growth in cables and wires, primarily led by volumes (three-year revenue compound annual growth rate ~15%). Margins were severely impacted due to high cost inventory, and softer realization on account of falling raw material prices. Electrical consumer durable segment (small appliance) volumes were impacted mainly due to seasonality, inflation, and channel destocking on account of the BEE transition in fans business. Other small appliances like water heaters and mixer grinders saw decent pick-up. In lighting business, Orient Electric Ltd. outperformed peers in Q2 with 15% YoY revenue growth. The room air conditioner industry absorbed a significant portion of the cost inflation initially, and is currently recouping the lost margins. Room AC sales in Q2 remained muted due to seasonality, BEE star rating change and lower consumer demand..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Durables Q2 Earnings Review - Demand To Pick Up With Improvement In Consumer Sentiment: Dolat Capital

Initial festive trends were not encouraging as high inflation and extended monsoon dampened secondary sales.

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