Consumer Durables Results Preview - Q1 Marred By Covid; Festival Sales Hold Key: Prabhudas Lilladher

Customers look at fans onsale inside a store near Crawford market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Consumer Durables Results Preview - Q1 Marred By Covid; Festival Sales Hold Key: Prabhudas Lilladher

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Prabhudas Lilladher Report

Q1 started on an optimistic note with demand momentum sustaining until mid-April, despite a strong close to March, post which the sentiment was disrupted until May due to 2nd Covid wave. However, June saw some pent-up demand, as markets opened up.

We expect our consumer durables universe to register high growth rates given the following factors:

  1. Favourable base due to complete lockdown impact.

  2. Delayed monsoon onset to extend seasonal product sales window.

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

However, we expect it to be 75%-80% of Q1FY20 levels. We expect sales/EBITDA/PAT growth of 57%/140%/175% across our coverage universe.

Commodity prices remained in an uptrend with LME spot copper/aluminium prices up by 15%/16% QoQ, which are likely to negatively impact gross margins as pricing actions remain inadequate to cover all costs.

Click on the attachment to read the full report:

Prabhudas Lilladher Consumer Durables Preview July 6.pdf

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