Connect with us

Daily News

Lockdown extension hits AC sales

Coronavirus and lockdown has left all businesses with uncertainty and troublesome environment for the entire current calendar year. But air conditioner industry in particular has faced much worst scenario.

The markets have seen a high volatility with fall of 30 percent from its January high in March to 12 percent rise in April. Many stocks have rallied as much as 100 per cent in this bounce back. The average returns of listed companies such as Blue star, Voltas and Amber enterprises stayed down at 3.2 percent. The benchmark index Sensex, on the other hand, has appreciated as much as 19 per cent during the same period. Blue Star and Voltas has given negative seven percent returns each. Owing to approximately 40 percent exposure to AC components, Amber enterprises has managed five percent positive returns.

The analysis of the historical result shows that these companies make nearly 60 percent to 65 percent of annual revenues in Q4 and Q1. The lockdown had already affected the sales of almost the entire month of March. The sentiments got further impacted due to the news flow that Coronavirus spreads rapidly in low temperatures.  As on May 15, only Blue Star has reported fourth quarter numbers, with 19 percent YoY drop in sales. The lockdown will further hit another month sales. This may virtually wash out FY21E in terms of top-line. DSIJ

Click to comment

Notice: Undefined variable: user_ID in /home/cloudpanel/htdocs/ on line 49

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2021 TV Veopar Journal

error: Content is protected !!