Consumer Durables Q1 Preview - Covid 2.0 Impacts Peak Season; Focus On Demand Recovery: Axis Securities
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Axis Securities Report
Overall demand has been impacted due to the second wave of Covid-19 and lockdown restrictions in the months of April and May 2021. However, gradual recovery has been seen post lockdown relaxations in June 2021.
Secondary sales of all the products have been impacted during the quarter. While consumer confidence in the near term is expected to bounce back in the light of increasing vaccination drive, sustainability of long term demand growth will depend on recovery from the pandemic.
Raw materials prices (viz. copper, aluminum, plastic, (toluene diisocyanate, polyol- used in the polyurethane foam) continued to rise during the quarter which will adversely impact the gross margins, moving forward.
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