Festive Surge: Consumer Durables Recover Amidst Challenging Q2

Despite challenges in Q2FY25, including weak consumer sentiment and lower footfall due to heavy rains, the consumer durables sector anticipates a 13% revenue growth. With notable volume growth in ACs and strategic market shifts, leading companies like Voltas and Blue Star project promising outcomes as the festive season approaches.

A new report from JM Financials reveals an optimistic outlook for the consumer durables sector, anticipating a festive rebound despite facing subdued demand in Q2FY25. Factors contributing to the weak sentiment included heavy rainfall impacting footfall, particularly in southern regions where the festive season started slowly.

The report indicates that demand for domestic appliances witnessed a slump, influenced by low consumer sentiment and liquidity issues in distribution channels. Additionally, reduced stocking prior to the festive period hampered sales of kitchen and domestic appliances. However, revenue growth for the sector remains promising, with expectations of a 13% rise.

Notably, the air conditioning segment saw strong performance due to inventory replenishment, experiencing a projected 15% to 20% volume growth in Q2FY25. Companies like Voltas and Blue Star are set for even greater success, with RAC volumes expected to climb by 25% to 30%. Meanwhile, the W&C segment's robust performance was driven by price hikes and growing export demand.

(With inputs from agencies.)