Moderation Expected in Household Durables Sector Revenue in Q3: HSBC Report
New Delhi [India], January 5: According to HSBC Global Research, businesses in India’s household durables sector are likely to experience a slowdown in revenue growth for the October-December quarter, based on their latest thematic report. The financial group highlighted a lackluster consumer demand environment as the primary factor for this moderation, linking it to various external conditions such as extended monsoons, delayed winter onset in some parts of India, and the festive season being spread across Q2 and Q3.
Despite decent demand during the festive period for key appliance categories, the momentum has softened in the period following the festivities. The report notes that while demand for certain items, such as air conditioners, remained strong, other categories experienced weaker performance. Specifically, air conditioners continued to see growth, largely due to relatively warmer conditions during the final months of 2024. However, demand for fans was notably subdued during Q3.
HSBC also provided insights into the financial sector, predicting continued earnings pressure due to slower loan growth, narrowing net interest margins (NIM), and a normalization of credit costs. The report suggests that large lenders within the Non-Banking Financial Companies (NBFC) sector are expected to report solid earnings, while those with Microfinance Institution (MFI) portfolios may face higher credit costs.
