Midcaps Q3 Earnings Preview - Demand Weakness Impacts Profitability; Margins Contract: Reliance Securities

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Reliance Securities Report.The economic activity was back to normalised levels at the beginning of Q3 FY22, while in the second half of the quarter, it deteriorated drastically amid rising Covid-19 caseloads. Majority of the manufacturing facilities and project sites were fully operational during October and November 2021, while utilisation dropped significantly in December 2021. On the demand front, various products categories saw a healthy demand in Oct-21, while it moderated in Nov-21, which resulted into weaker festival sales and subdued wholesale dispatches amid the high inventory.Moreover, Dec-21 witnessed a price correction across commodities, which led to inventory destocking by dealers, impacting factory level off-take. Thus, overall volume declined YoY in single-digit across segments on the high base of last year. The sequential decline was even sharper due to weak festival sales as well as post festival inventory correction..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Midcaps Q3 Earnings Preview - Demand Weakness Impacts Profitability; Margins Contract: Reliance Securities

Midcaps Q3 Earnings Preview - Demand Weakness Impacts Profitability; Margins Contract: Reliance Securities

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