Consumer Electricals Sector Check - ECD Recovery Still Away; Cables, Wires' Traction Sustained: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Q3 FY24 results and key trends: Aggregate revenue/Ebitda/profit after tax of eight companies within our coverage universe (up 10%/5%/6% YoY, up 6%/1%/3% QoQ) came 4%/15%/15% below our estimates owing to continued subdued results of fast moving electrical goods divisions marred by weak consumer sentiment towards discretionary spends. Management of leading FMEG companies remained optimistic about recovery Q4 onward without any meaningful signs visible yet. Basis 9M results, we cut FY24E earnings estimates but kept it broadly same for FY25E/26E for our coverage FMEG companies. Momentum sustained in the cables and wires industry on continuing healthy traction in housing and infrastructure activities. Consolidated revenue of five leading companies under our coverage grew healthy at 14% YoY and 4% QoQ (broadly in line) driven by robust volumes in cables. Polycab India Ltd. (up 17% YoY and 3% QoQ) led the pack followed by KEI Industries Ltd. (up 15% YoY and 6% QoQ). Wires segment faced some slowdown and thus restricted YoY revenue growth of Havells India Ltd. (up 11%), V-Guard Industries Ltd. (up 8%), Finolex Cables Ltd. (up 8%) and RR Kabel Ltd. (up 9%). Copper price was flattish QoQ (up 5% YoY) in Q3 on a three-month rolling basis. We broadly maintained our FY25E/26E earnings estimates of cables and wires coverage companies post Q3 result..Outlook: For FMEG, amid general weak consumer sentiment towards discretionary spends, management continued to sound optimistic about recovery Q4 onward without any meaningful signs visible yet. Our sanguine outlook on the C&W industry factors in continuing healthy traction in housing and infrastructure activities; moderate returns in scrips are expected after significant re-rating in last one-two years..Click on the attachment to read the full report:.Coal India - E-Auction Volumes To Rise To 15% In Q4: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Electricals Sector Check - ECD Recovery Still Away; Cables, Wires' Traction Sustained: Systematix

Our sanguine outlook on the C&W industry factors in continuing healthy traction in housing and infra activities; moderate returns in scrips are expected after significant re-rating in last 1-2 yrs

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