Epack Durable Raises Revenue Guidance For Current Fiscal On Strong Demand
CEO Ajay Singhania said Epack Durable is targetting a 45–50% revenue growth this fiscal, 5 percentage points higher than the guidance announced earlier.
Home appliances maker Epack Durable Ltd. expects an upward revision in its revenue guidance for the financial year 2024–25, backed by sustained demand in the coming quarters.
The company's Managing Director and Chief Executive Officer Ajay Singhania told NDTV Profit that Epack Durable is targeting a 45–50% revenue growth this fiscal, 5 percentage points higher than the guidance announced earlier.
“The demand for appliances has been strong this year and continued in Q2. Even now, we see a strong pull with minimum inventory, especially for air conditioners. Fortunately, the AC segment is still playing very well with a lot of schemes for the off-season and is continuing to grow," he said.
Commenting on the projection for the second half of the current fiscal, Singhania said that the company’s smaller appliance segment is set to grow at a "definitive" rate of 15–20% on annual basis, with the boost during the Diwali. For ACs, he predicted a growth rate of over 40% in the upcoming period.
According to the Epack Durable top executive, the inventory for ACs is on the lower side on an industry level due to sustained demand, because part of north India still deals with a hot season.
"Brands are preparing themselves for the upcoming hot season for the next year in a very robust and aggressive way. Having witnessed a supply situation, where we were caught unprepared, everybody is preparing strongly for the coming season. We will see the start of the manufacturing season much earlier as compared to previous years," Singhania said.
The company is working on adding washing machines and air fryers to its product portfolio. "The mass production (for washing machines) will start from the first week of November. So that is another product we are adding up and diversifying into, among larger appliances. On the small appliances side, we are looking at import substitutions and our air fryers are now ready and will commence production in mid-December,” Singhania said.
Shares of Epack Durable closed higher by 0.8% at Rs 366 apiece on the NSE in comparison to benchmark Nifty’s decline of 0.14% on Friday.
