Q3FY24 conference call takeaway [I think it’s the first one]:
- Sales momentum across key categories- Refrigerators and Washers
- Long-term outlook for growth and margins are both in the high single digits. Considering the profitability of all the competitors, double digit margins seem difficult.
- Special emphasis on hiring, training, and retaining the Retail Executives as they are the key influencers on the floor when a customer is about to make a decision
- Revised incentive plans for the sales team from Q4FY24 – based on number of touchpoints and the sales Value
- Building D2C Capabilities for the Future
- No major capex required as existing capacities are sufficient for now.
- AC and Microwave oven are manufactured by third-party as per our specifications.
- Significant runway to sell premium products as our overall share in that category is too low.
Overall opinion: H1FY24 was suppressed. Q3FY24 momentum expected to continue in Q4FY24. Hence, next 9~12 months results shall show YoY improvement.
Disc: No Position.
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