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

New Delhi [India], January 5 (ANI): Businesses in India's household durables segment are expected to see some moderation in revenue growth in the just-concluded October-December quarter, asserted HSBC Global Research in a thematic report ahead of the impending earning updates.

The global financial services group attributed continued unexciting consumer demand environment to climatic conditions -- extended monsoon season and delayed winter onset in few parts of India, and spread of festive season across Q2 and Q3, as reasons behind its weak revenue growth view for the household durables.

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

The air conditioners category continued its robust growth momentum as the last three months of the calendar year 2024 (Oct-Dec) together were relatively warmer.

"Demand for fans was soft during Q3," it said.

In another report specific to the financial sector, HSBC Global Research said it expects earnings pressure to continue.

For banks, it expects earnings pressure from slower loan growth, pressure on net interest margin (NIM) and some normalisation in credit costs.

For NBFCs, it said large lenders should report healthy earnings.

"Lenders with MFI (Micro finance Institution) portfolios likely to report high credit costs," it said. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)