How did consumer durables makers fare in Q3?
Listed AC makers reported a difficult quarter. Newly listed LG India reported a 61% drop in profit, while Bluestar posted a 38.6% fall in profit and Voltas a 35% fall. Lloyd Consumer, owned by listed Havells India which also sells ACs, saw a 5.6% decline in revenue in the quarter. Both Crompton Greaves and Whirlpool India reported lower profits, while Bajaj Electricals reported a loss. Companies note that demand has not picked up. According to Thiagarajan, the reason is that FMCG-related demand has not bounced back. “We thought with the substantial reduction in GST for food and processed food products, there should be huge demand growth, and at least, we have not seen till now that part reviving,” he said, pointing to the slow uptick from ice-cream and quick service restaurant segments.
