Covid-19 lockdown to hit consumer durable firms; FY21 earnings estimate cut

Brokerages believe the extension of lockdown can potentially wipe off a major portion of seasonal sales for RAC.

The nationwide lockdown to stem the spread of Coronavirus (Covid-19) pandemic is expected to significantly hit the consumer durable companies such as Havells India, Voltas, and Crompton Greaves CE as the demand for the summer season products like room air conditioners (RAC), coolers and fans will be severely impacted. 

That apart, lower infra spending since the government's top-most priority, at present, is to battle the pandemic, may also impact the mechanical, engineering and plumbing (MEP) business of the companies. Further, a prolonged slowdown in the real estate sector, muted spending from the private sector and tight liquidity will also add