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Consumer Durables Q2 Earnings Preview - Demand Sustains But Disruptions A Worry: Prabhudas Lilladher

Consumer Durables Q2 Earnings Preview - Demand Sustains But Disruptions A Worry: Prabhudas Lilladher

Sales representative  assists a shopper looking at washing machines at a store (Photographer Tim Boyle/Bloomberg)
Sales representative assists a shopper looking at washing machines at a store (Photographer Tim Boyle/Bloomberg)

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Prabhudas Lilladher Report

Q2 continued to exhibit sustenance of demand momentum seen in June 2021 post unlock 2.0 before tapering off a little towards September 2021 end.

Industry witnessed broad based growth across product categories and geographies.

We expect our consumer durables universe to register a two year sales compound annual growth rate of 11.6% over 2019 given-

  1. improving consumer confidence aided by rising vaccination counts

  2. festive season sales and

  3. retention of FY21 market share/ shelf space gains.

We expect sales/Ebitda/profit after tax YoY growth of 20%/13%/ 15% across our coverage universe.

Although commodity prices stabilised briefly in Q2, they continue to remain at elevated levels with London Metal Exchange spot copper/ aluminum prices up by 43%/55% YoY.

Click on the attachment to read the full report:

Prabhudas Lilladher Consumer Durables Q2FY22 Earnings Preview.pdf

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