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Informist, Wednesday, Jun. 25, 2025

 

By Simran Rede

 

MUMBAI – In the seasonally-weak March quarter, durable goods companies as well as retail companies reported higher-than-anticipated on-year growth in net profit. However, these companies failed to meet the expectations of on-year growth in revenue.

 

The aggregate net profit for the March quarter of three durable companies that are part of the Nifty 200 index grew 76% on year, significantly higher than analysts' estimate of 42% on-year growth. This growth was driven by Dixon Technologies (India) Ltd. and Havells India Ltd. However, the three companies' net sales grew 51% for the reporting quarter, below analysts' forecast of 53% growth.

 

The five retail companies that are part of the Nifty 200 universe saw their aggregate bottom line rise 89% on year, against expectations of a 57% increase. However, their revenue grew only 17% for the quarter, lower than the 19% growth expected.

 

CONSUMER DURABLES

Dixon Technologies, Havells India, and Voltas Ltd. are the three consumer durables companies in the Nifty 200. The net profit of Dixon Technologies and Havells India for the March quarter grew higher than analysts' estimate of 42% growth for the sector.

 

The net profit of Dixon Technologies grew 321% on the back of a one-time gain of INR 2.50 billion. Excluding the one-time benefit, its net profit growth moderates to 59%. Analysts had expected the company's net profit to grow 130% for the March quarter.

 

Havells India's net profit growth also exceeded analyst forecasts on the back of sectoral tailwinds, strong channel restocking ahead of summer, and a pick-up in government spending on infrastructure. 

 

The net profit of Voltas for the March quarter beat the sector estimate, rising 107% on year. Voltas's robust performance was driven by higher volumes in its unitary cooling products segment.

 

The aggregate revenue growth of the three companies for the quarter was the highest in four years, but only one exceeded the consensus view on revenue growth for the sector. Overall, the companies did not perform well on the sales front owing to lower demand in the off-season, muted prices, and inflationary pressures. Voltas was the best performer in terms of net profit growth, but underperformed on revenue growth on account of low demand in most of its product categories.

 

RETAIL COMPANIES

Five retail companies are part of the Nifty 200 index. For the March quarter, they reported a significant rise in their bottom lines despite subdued demand. The aggregate net profit of these companies for the quarter rose 89% on year, sharply above the expected 57% growth.

 

Of the five, Aditya Birla Fashion and Retail Ltd. was the only company to report a loss for the quarter. However, the loss narrowed on year and was also lower than what the Street had anticipated. FSN E-Commerce Ventures Ltd. and Trent Ltd. did better, by a wide margin, than the sector estimate for net profit growth. Trent's net profit for the quarter, excluding gains from one-time items, surged 215% on year. Avenue Supermarts Ltd.'s bottom-line growth of 3% was the lowest among its peers.

 

Like in the December quarter, the net profit margin of Page Industries Ltd. was the highest among its peer companies at 14.94%. The aggregate net profit margin for the sector contracted to 4.49% from 5.28% a year ago. The aggregate net profit margin for the December quarter was 5.12%.

 

Only two of the five retail companies exceeded the sector estimate of 19% revenue growth, but they missed their own respective revenue growth estimates. Two other companies did better than expected individually while falling short of the sector estimate. Avenue Supermarts missed both the sector and individual estimates, which in the company's case nearly coincided at 19%. The company's revenue for the March quarter grew 17% on year.

 

However, in absolute terms, the revenue of Avenue Supermarts was the highest among its peers. Aditya Birla Fashion's top line improved nearly 6% on year during the quarter under review, higher than analysts' estimate of 4.4% for the company. FSN E-Commerce's revenue growth was largely as expected and beat the sector estimate.

 

The following table shows the performance of the three companies in the consumer durables sector vis-a-vis the consensus estimate for each company as well as the consensus estimates for the consumer durables sector and the Nifty 200 index:

 

Nifty 200 Q4 PAT growth 14.76%

Nifty 200 Q4 PAT growth consensus estimate 0.78%

Nifty 200 Q4 revenue growth 5.85%

Nifty 200 Q4 revenue growth consensus estimate 5.20%

 

Company	PAT beat analysts' estimate	Adjusted PAT growth % (without exceptional items)	Adjusted PAT	PAT beat sector estimate	PAT beat Nifty 200 estimate		Revenue beat analysts' estimate	Revenue growth %	Revenue	Revenue beat sector estimate	Revenue beat Nifty 200 estimate
			growth						growth
			estimate %						estimate %
Durables sector		76.25	41.76					50.88	52.64
Dixon Technologies (India) Limited	YES	58.00	130.04	NO	YES		NO	120.97	127.11	YES	YES
Havells India Limited	YES	16.35	3.33	NO	YES		YES	20.20	16.40	NO	YES
Voltas Limited	NO	106.99	117.73	YES	YES		NO	13.44	16.99	NO	YES

 

 

The following table shows the profit margins of the three consumer durables companies that are a part of the Nifty 200.

 

	PAT Margin for Mar-25	PAT Margin for Mar-24	PAT Margin for Dec-24
Nifty 200	12.93%	11.93%	12.47%
Durables sector	5.39%	4.62%	3.18%

 

Company	PAT Margin for Mar-25	PAT Margin for Mar-24	PAT Margin for Dec-24
Dixon Technologies (India) Limited	3.89%	2.04%	1.64%
Havells India Limited	8.00%	8.26%	5.79%
Voltas Limited	5.06%	2.77%	4.26%

 

The following table shows the performance of the five companies in the retail sector vis-a-vis the consensus estimate for each company as well as the consensus estimates for the retail sector and the Nifty 200 index.

 

Nifty 200 Q4 PAT growth 14.76%

Nifty 200 Q4 PAT growth consensus estimate 0.78%

Nifty 200 Q4 revenue growth 5.85%

Nifty 200 Q4 revenue growth consensus estimate 5.20%

 

Company	PAT beat analysts' estimate	Adjusted PAT growth % (without exceptional items)	Adjusted PAT	PAT beat sector estimate	PAT beat Nifty 200 estimate		Revenue beat analysts' estimate	Revenue growth %	Revenue	Revenue beat sector estimate	Revenue beat Nifty 200 estimate
			growth						growth
			estimate %						estimate %
Retail sector		89.29	56.86					16.99	18.96
Aditya Birla Fashion and Retail Limited	YES	--	--	--	--		YES	5.59	4.37	NO	YES
Avenue Supermarts Limited	YES	2.57	2.56	NO	YES		NO	16.69	19.14	NO	YES
FSN E-Commerce Ventures Limited	NO	192.64	193.29	YES	YES		NO	23.61	24.25	YES	YES
Page Industries Limited	YES	51.57	24.78	NO	YES		YES	10.64	8.77	NO	YES
Trent Limited	NO	-46.52	206.13	NO	YES		NO	28.84	34.29	YES	YES

 

The following table shows the profit margins of the five retail companies that are a part of the Nifty 200.

 

	PAT Margin for Mar-25	PAT Margin for Mar-24	PAT Margin for Dec-24
Nifty 200	12.93%	11.93%	12.47%
Retail sector	4.49%	5.28%	5.12%

 

Company	PAT Margin for Mar-25	PAT Margin for Mar-24	PAT Margin for Dec-24
Aditya Birla Fashion and Retail Limited	-0.47%	-6.74%	-1.19%
Avenue Supermarts Limited	4.28%	4.88%	5.04%
FSN E-Commerce Ventures Limited	0.98%	0.42%	1.15%
Page Industries Limited	14.94%	10.90%	15.59%
Trent Limited	8.52%	20.53%	10.35%

 

End

 

Edited by Rajeev Pai

 

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