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Last Updated : Jul 16, 2019 07:50 PM IST | Source:

White goods makers may see non-TV, non–government revenue surge in Q1

Analysts expect sales to grow 14-15 percent on a year-on-year basis for electrical goods

M Saraswathy @maamitalks
  • bselive
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Consumer durables firms are likely to see non-government and non-television revenues surging in the June quarter. Analysts estimate revenue growth in the range of 15-20 percent for white goods firms.

Some of the large listed companies in this space include Bajaj Electricals, Blue Star, Crompton Greaves, Havells, Symphony and Voltas.

Motilal Oswal said that Crompton is their top pick in the electronic consumer durables segment.

Further, in terms of other companies Motilal Oswal research said that the unitary cooling division (UCP) of Blue Star is likely to report revenue growth of 20 percent. It added that a strong summer has helped clear the inventory.

It is likely that the air conditioner (AC) segment across companies will perform well due to the base effect. In Q1FY19 unseasonal rains had led to cooler weather which caused a drop in air-conditioner sales.

Overall, analysts expect sales to grow 14-15 percent on a year-on-year basis for electrical goods.


For players like Bajaj Electricals, Havells and Crompton who also operate in the lighting segment, a key area to watch would be the performance in this space. This is because there has been a price increase in the segment which could impact revenues.

However, the television segment was a dampener despite the ICC World Cup. Sales have been below expectations which could reflect in the June quarter numbers.

For a majority of players, the pure retail consumer durables business could drive growth.

A report by Reliance Securities is expecting Havells to report a 19 percent growth in revenue in the first quarter. This, it said, will be driven by 25 percent growth in electrical consumer durable business and 18 percent growth in the lighting and fixtures segment. It expects the EBITDA margin to remain flat YoY at 12 percent.

The first half of the financial year is generally considered a good period for white goods firms. This is on account of summer sales as well as festive purchases by the customers.

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First Published on Jul 16, 2019 07:39 pm
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