Latest news with #consumerdurables
Times of Oman
12 hours ago
- Business
- Times of Oman
Indian consumer durable companies likely to see moderate growth in this quarter: Goldman Sachs
New Delhi: Consumer durable companies in India are expected to report moderate growth in the first quarter of the financial year 2025-26 (April-June), according to a recent report by Goldman Sachs. The report mentioned that the overall growth for consumer durables and electrical companies is likely to slow down in the current quarter. It stated "We expect consumer durables and electricals companies' growth to moderate this quarter. While B2B categories have a better outlook". While the business-to-business (B2B) categories are performing better due to strong government capital expenditure in April and continued work on major government-led projects like PM-KUSUM, RDSS, and Bharatnet, the business-to-consumer (B2C) categories are expected to see slower growth during this period. According to the report, demand from B2C segments is still weak, and the real estate-driven demand has not yet picked up. This is especially visible in the cooling products category like air-conditioners and refrigerators, where sales have been on the lower side. As a result, the overall growth expectations for companies covered under consumer durables have come down for this quarter. Goldman Sachs added that although some positive macroeconomic factors like lower inflation, tax cuts, and favourable interest rates are present, their impact on demand and consumer sentiment is likely to be seen only in the second half of FY26. The report also highlighted that companies are facing margin pressures due to negative operating leverage, which means their fixed costs remain high while revenue growth is not strong enough to offset them. However, this margin pressure is being partially managed by lower commodity prices and selective price increases in products. In terms of raw material prices, copper and aluminium have seen a month-on-month increase in May and June. This may lead to some restocking by companies.
Entrepreneur
06-05-2025
- Business
- Entrepreneur
India's Cash-Driven Consumption Surges in FY25: Report
The average cash dispensed per ATM hit INR 1.3 crore in FY25, with Bihar emerging as a new consumption hotspot alongside Himachal Pradesh and Chhattisgarh. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India's consumption engine continues to roar in 2025, powered by cash and confidence, according to the latest CMS Consumption Report 2025 released by CMS Info Systems. Based on data from 1,46,000 business points across the country, the report tracks spending through the lens of the CMS cash index (CCI), revealing a nationwide upswing in key sectors, shifting regional dynamics, and a return to physical retail. Anush Raghavan, president, cash management solutions at CMS Info Systems, noted, "The third edition of the CMS Consumption Report, highlights cash-led consumption trends and emerging hotspots across India… The findings reveal compelling trends that underscore India's ongoing consumption boom." Consumer durables led the charge with an eye-catching 72 per cent jump in monthly average spending in FY25, a stark rise from just 6 per cent in FY24. This surge reflects a growing appetite for home ownership and the accompanying demand to furnish these spaces, pointing to broader economic optimism. Multi-brand outlets rebounded sharply, registering a 12 per cent rise in spending after a 29 per cent dip in FY24. The revival is fueled by a trend toward premiumization and a consumer preference for in-person shopping, particularly when it comes to high-value purchases. The FMCG sector, long considered a bellwether for everyday consumption, also signaled a steady recovery. After a 22 per cent fall in FY23, it climbed four per cent in FY25, indicating a resilient base for essential goods despite rising interest in services and experiences. Cash remains a dominant force. The average cash dispensed per ATM hit INR 1.3 crore in FY25, with Bihar emerging as a new consumption hotspot alongside Himachal Pradesh and Chhattisgarh. Uttar Pradesh and Delhi continued to hold strong positions for the second consecutive year. Notably, October 2024 through March 2025 saw sharp monthly upticks in ATM withdrawal ticket sizes, peaking at six per cent in March. The rise in disposable income is evident, with average monthly ATM withdrawals increasing three per cent year-on-year to INR 5,658. Quick Commerce also made significant inroads, growing 10 per cent year-on-year, thanks to hyper-local delivery models meeting instant demand.
