Consumer durables sales likely to rise in June quarter, but rising raw material costs could hurt margins: Kotak
New Delhi, July 6 -- Consumer durables companies are likely to report better sales in the June quarter, supported by healthy demand in key product categories. However, higher raw material costs are expected to put pressure on profit margins, according to a Kotak Institutional Equities 1QFY27 consumer durables earnings preview report.
The brokerage expects the wires and cables segment to lead the sector's performance during the quarter, driven by higher metal prices and improving volumes.
"Volume growth is likely to improve sequentially. Pricing growth is expected to remain healthy as copper and aluminium prices were up around 51 per cent and 57 per cent year-on-year, respectively, on an M-1 basis in the first quarter," the report said....
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