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

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.

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


This 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.

Most Related Links :
reporterwings Governmental News Finance News

Source link

Back to top button