AC cos may face the heat in June qtr

For companies selling air conditioners (ACs), seasonality plays a crucial role.

- Vineetha Sampath

With erratic rains in India in the last two-three months, FY24 has begun on a dull note. This would mean AC companies will likely face heat in the June quarter (Q1FY24).

Channel checks by various brokerages show that demand in India’s north and central regions was the most impacted by the weather. “Channel checks in the National Capital Region (Delhi, Uttar Pradesh and Haryana)—a large market for room ACs—indicate a muted Q1FY24 for room ACs, with volume declining by about 25-30% y-o-y," analysts at Nirmal Bang Equities said in a report on 26 June.

This would hurt companies in the room AC segment, such as Voltas