HSBC report: Household durables sector to see revenue dip in Q3

India's household durables segment is likely to witness a slowdown in revenue growth for the October-December quarter of 2024, according to a thematic report by HSBC Global Research.

- TBG NETWORK

Released ahead of forthcoming earnings updates, the report identifies muted consumer demand as a key factor driving this moderation. This subdued environment, the financial services group asserts, stems from a combination of climatic conditions and seasonal factors.

HSBC Global Research highlighted that an extended monsoon season, delayed onset of winter in some regions, and the dispersal of the festive season across the second (July-September) and third (October-December) quarters negatively impacted demand. These factors resulted in a lackluster post-festive sales environment for household durables. While the festive season provided a temporary boost, the overall market struggled to maintain momentum once the celebrations ended.

"The demand conditions in festive periods for the relevant categories (appliances) were decent, but it has been soft post the festive season," the report noted.