Our key takeaways Sales in April were weak and demand was subdued on rain/hailstorms across the country. This continued into May, but finally, the weather has turned warm in Telangana, Maharashtra, Goa, Gujarat and North India over the past week. Rains continue in Kerala, West Bengal, Tamil Nadu, and the North East. Yet, industry sales are unlikely to decline in 1QFY19. Year-on-year, sales are likely to be flat in 1QFY19. In FY19, Blue Star now expects the room AC industry to grow 15%, despite the muted 1Q summer sales; it had earlier estimated 15-20% growth. sales expected to grow at a CAGR of 15-20% over the next few years, (b) consumer financing via EMIs, and (c) rising income levels. These would continue to drive demand for ACs, despite seasonal variations. Blue Star expects inverter ACs to be 60% of the room AC market by FY20. For Blue Star, inverter ACs are likely to be 45% of sales in FY19.