Due to localized lockdown in Q1 it was not such a bad quarter as compared to Q1FY21. But it was a bad quarter compared to Q4FY21.
Muted government spending in the infrastructure sector affected the sales
Demand from the factories and light industry has been positive
Continue to focus in infrastructure sector like metro railways, electrical subsector, water distribution, factories, data centers and warehousing.
Market share in Ducted Air conditioning-1
Market share in VRS- 2 and Market share in chiller products- 3.
International projects like Qatar have shown a positive trend.
Room AC- 13% market share, they are planning to increase it to 15% by next one to two years.
Capital intensive sector is playing out well. Demand has been positive.
Consumer sector has shown an increasing spend despite the raw material increase.
In unitary segment, they are expanding the range of products and solutions in purification, cooling. Revenue mix in unitary segment is 60% (Room AC) and rest- cooling, refrigeration (40%)
Margins in unitary segment is expected to be around 8% by the end of FY22.
Price increase has been around 5% in Q4 and 3% in Q1FY22.
Online sales at the market level is 15% while at the company level it is 13-14%.
North India revenue mix is 40%, especially because of the prolonged summer.
South India sales were affected due to early monsoon, pandemic impacts because of localized lockdown.
Commercial Refrigeration consists of 40% sales in the Unitary segment
Inventory levels will settle down in the coming quarters.
Project Business: They have a healthy order book. Margins (4.5 to 5%).
Professional Electronics and Industrial Systems: In this segment Margins are high (13.5 to 15%) as compared to other segments.
Inverter AC – 58% and Non-Inverter is 42% in terms of sales.
PLI scheme: They are evaluating the components in which they will like to enter.
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