Consumer durable demand outlook likely to remain weak in Q3FY23

While input costs have eased, lower volumes could impact margins

Demand trends for the consumer durables sector are expected to remain weak for the second consecutive quarter, impacting the performance of companies in the third quarter for the 2022-23 financial year (Q3FY23). After a strong Q1FY23, the performance of consumer durable majors -- barring wires/cables companies -- have been sluggish.

Analysts, led by Aniruddha Joshi of ICICI Securities, expect the white goods and durables sector to report weak revenues in Q3FY23 on account of post-Diwali slowdown in consumer offtake, led by steep price hikes, inflationary pressures and higher interest rates. What would impact the sector further is reduction in trade