IFB Industries Q1 Review - Restoring Peak Margins, A Long Drawn Process: Yes Securities

IFB Industries Q1 Review - Restoring Peak Margins, A Long Drawn Process: Yes Securities

<div class="paragraphs"><p>IFB Point store exterior. (Photo: Usha Kunji/ Source:&nbsp;BQ Prime)</p></div>
IFB Point store exterior. (Photo: Usha Kunji/ Source: BQ Prime)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

IFB Industries Ltd.'s revenue has bounced back on account of favorable base and higher growth from room air conditioner on account of strong summer demand.

Gross margin contracted by 447 basis points due to high inflation in key raw materials which was not fully passed on. The company has increased product prices by 3‐4% on average basis.

IFB Industries' focus on getting higher extraction from channel is now slowly bearing fruit as it has seen volume growth across the product categories which is higher than the market growth.

We have already built in increased efficiency in home appliances resulting from the higher utilisation of AC plant. IFB Industries is expecting to manufacture 0.35‐ 0.4 million units in FY23 in room AC of which will take its utilization to 80%.

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Yes Securities IFB Industries Q1FY23.pdf


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