DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^65)
government’s initiative of 'Make in India' which is a great
opportunity for this sector. With such initiatives, the
manufacturers bring in new and different technologies that
focus on being energy efficient and environment-friendly
products.
The wide usability of online sales and also the rise in the working
age population has stimulated the demand. It is to be noted that
consumer durables are one of the most sought-after products,
especially during the festive season. Among other products that
belong to the sector, the sales of TVs have increased the most
recently with the rise of on-demand video platforms like Netflix
and Amazon Prime. Streaming video is changing every existing
relationship in the TV value chain, thereby redefining the role of
traditional TV. The prices of the products in the consumer
durables segment, especially those of TVs and refrigerators, have
been brought down over the years owing to the advancement in
technology and the fierce competition in the sector. With the
changing taste of the customers in the technology industry,
companies have to keep up and deliver the appropriate gadgets.
Therefore, companies have to offer progressive and evolving
gadgets to their consumers.
To study the consumer durables sector, we have taken into
consideration 15 top companies based on market capitalisation.
The aggregate net sales of 15 companies put together has
jumped 15 per cent to 43,087.96 crore in FY19 from 37,369.13 crore in FY18. The aggregate operating profit in
FY19 has been 3,758.33 crore, up by 6 per cent from 3,537.93 crore in FY18. The net profit has jumped 5 per cent to
2,495 crore in FY19 from2,336.36 crore in FY18. The total
EPS of 15 companies has risen by 40 per cent in FY19 to
488.01 as compared to348.17 in FY18.
Bajaj Electricals has reported the highest growth in net sales, a
whopping 41.62 per cent jump in FY19. Amber Enterprises
India is in the second place by reporting a growth of 30 per cent
in FY19 in terms of net sales. KDDL has registered a net sales
growth of 24 per cent in FY19. In terms of operating profit, the
company to have posted the highest growth is KDDL with
48.04 per cent jump in FY19. Blue Star and Tejas Networks do
not stand far behind as they have reported a growth of 30.33
per cent and 28.34 per cent in operating profit in FY19,
respectively. In terms of bottomline, Bajaj Electricals grabs the
top position among the 15 companies, posting a 65.59 per cent
jump in PAT in FY19. Amber Enterprises comes in second,
posting a PAT growth of 52.09 per cent in FY19. Not too far
behind is Blue Star as the company registered a jump of 43.11
per cent in PAT for FY19.
What is expected from the future is mostly growth and
innovation in the products of the consumer durables sector.
However, the challenges will always be daunting as the Indian
market remains a matured market with cut-throat competition
on innovation, quality and price. If the companies in this sector
can keep up with the pace of technology, then all is bright and
beautiful for the sector going ahead.
India imports mainly televisions and air
conditioners mostly from China and Southeast
Asia. India also imports from Japan, Indonesia,
Malaysia, and Taiwan. On the other hand, India’s
consumer durables exports include refrigerators
and refrigerating equipment compressors, color
TVs, air conditioner parts and compressors, and
fully automatic washing machines. The U.A.E.
is a major export location.
17.30 15.64 11.70 10.83 -7.69 -1.46 10.62 15.92 17.62 15.75 33.08 33.08 33.08
27.64 24.47 18.92 8.26 14.67 16.08 12.94 21.85 23.71 23.21 126.87 126.87 126.87
6.42 5.17 4.52 9.11 10.31 24.32 24.28 47.94 54.48 79.15 125.40 125.36 125.35
228.13 129.31 99.34 12.59 18.02 -27.00 76.42 28.20 19.16 30.45 11.56 11.56 11.66
27.52 23.77 33.84 5.76 -40.00 -52.85 15.80 35.77 42.44 37.89 14.00 14.00 13.99
15.55 12.88 11.65 12.62 30.33 43.11 20.72 19.07 20.08 22.94 19.26 19.20 19.11
8.20 10.09 9.46 41.62 15.90 65.59 -18.74 10.60 13.51 12.87 20.48 20.41 20.26
17.54 19.57 12.72 17.56 -20.05 -10.34 -10.34 12.20 15.61 53.65 41.28 41.28 41.28
30.14 19.81 12.80 29.32 15.97 52.09 52.15 9.49 6.97 6.10 31.45 31.45 23.81
55.95 54.51 46.13 5.03 19.68 4.02 2.64 16.74 19.33 24.13 11.33 11.33 10.99
16.13 12.41 10.38 20.07 28.34 38.23 29.98 11.15 9.24 15.68 91.50 90.82 89.54
15.63 1.94 2.86 24.06 48.04 38.35 705.23 15.62 1.95 6.42 11.63 10.95 10.84
1.02 -0.91 -1.38 -12.48 -60.69 NA NA 13.67 -14.57 -17.61 23.10 23.10 21.18
19.17 12.42 16.68 0.38 -20.30 -5.00 54.42 22.30 16.42 23.76 16.33 16.33 15.67
1.67 7.10 5.57 14.56 16.50 3.35 -76.50 16.29 16.59 15.88 10.74 10.74 10.74
EPS () YoY Growth FY19 (%) RoNW (%) Equity ( in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1