Import duty hike on 19 items: Consumer durables makers the biggest losers

Firms expected to pass on higher cost but it will come with a lag, impacting margins in the near term

While the custom duty hike on 19 goods will affect multiple sectors, the impact on consumer durables is expected to be the most as it comes at a time of weak demand. 
 

Consumer durable makers are hoping for an uptick in sales ahead of the festive season as the fiscal year has been subdued due to unseasonal rains. Sales of air conditioners have especially been impacted in a seasonally strong June quarter. The duty hike will add to the import bill worsened by a depreciating rupee. 

Sanjeev Hota at Sharekhan says an import duty hike on consumer durables like ACs,