Earnings Call Transcript of Discussion between Management and Analysts for Q3FY20
Opening Remarks
Deterioration in economic macros, sectorial liquidity challenges and slowdown in infrastructure segment has impacted the demand for industrial products within Cables, Professional Lighting and Switchgears. The general consumer sentiment has also been weak, though we have managed to remain stable in consumer categories. Despite softness in revenues, contribution in EBITDA margins have been maintained owing to cost rationalization and increased cost consciousness. On Lloyd, though the LED TV disruption has continued to impact the performance in Lloyd, there has been significant improvement sequentially on the back of growth in ACs.
Recently, we have arranged AC factory visit for all our retailers and distributors and the feedback we got has been very encouraging. The level of backward integration and level of automation in the AC factories has helped boost the trade confidence for the upcoming season. Overall, there is optimism aimed to lower inventory levels at dealers and a modest recovery in consumer business. We expect decent recovery in the further quarters.
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