In Mumbai, India companies related with home decore items right from construction of buildings and houses to the furniture world, have suffered decline in profits during this pandemic period and have taken cost cutting as their preventive measure.
The manufacturers of discretionary items have been severely impacted by the coronavirus crisis. Some of these casualties are tile, sanitaryware and plywood makers. For key listed companies in this sector, Kajaria Ceramics Ltd, peer Somany Ceramics Ltd, Century Plyboards Ltd and Greenlam Industries Ltd, March was a washout quarter. These companies put up a dismal show on most key earnings parameters.
Sales volumes saw steep declines in the March quarter, thus weighing on profits and realizations. While no guidance has been provided, management commentaries point to a bleak demand outlook. Until normalcy resumes, these companies may face working capital challenges. The companies thus plan to stick to their cost-cutting plans to wade through this crisis.