New Delhi, Nov 21
Revenue of consumer durable manufacturers in India is projected to rise 11-12 per cent this fiscal (FY25), continuing the healthy run after a strong 13 per cent growth last fiscal, according to a report on Thursday.
A Crisil Ratings report said this will ride on rising adoption of consumer durable financing, which supports the trend of premiumisation, resulting in better realisations. Festive spending and strong growth in housing sales should support overall volumes, following strong demand for cooling products during the intense summer season this fiscal.
Operating margin will improve to 6.8-7 per cent this fiscal, from 6.5 per cent last fiscal, driven by better operating leverage and stable raw material prices, but remain below pre-pandemic highs owing to intense competition.
“While, total capital expenditure (capex) this fiscal, will remain similar to that incurred last fiscal, consumer durable makers will invest on introducing new features that offer differentiated value proposition to consumers,” the report mentioned.
Strong cash generation and healthy liquid surplus will keep reliance on external debt low, supporting the credit profiles of players.