Brokerage sees dour Q4 earnings for consumer electricals on weak demand

Orient Electric

05/04/2023 11:22

** Brokerage Phillip Capital sees gross margin pressure and
weak Q4 earnings for consumer electricals companies due to lower
demand even as the industry pitched steep discounts to push
inventories  
    ** Says cos selling fans saw decline to flattish primary
billing despite incentives and discounts as the unseasonal rains
dampen demand, leaving them with higher inventories   
    ** With unseasonal rains, room air conditioner (RAC) volumes
were impacted in March while Feb saw strong volume growth -
brokerage
    ** Sees demand to pickup in summer season 
    ** Shares of Finolex Cables Ltd  FNXC.NS  up as much as
3.6%, Havells Ltd  HVEL.NS  shares up as much as 1.8% on
Wednesday
    ** Shares of Orient Electric Ltd  ONTE.NS  down as much as
3%, while Blue Star Ltd  BLUS.NS  up as much as 3.8%
    

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((Dimpal.Gulwani@thomsonreuters.com;))