PRODUCTION CUT BY 25% IN Q2FY23 TO IMPACT ELECTRONIC CONTRACT MANUFACTURERS
News: According to The Economic Times, the leading consumer electronic brands have decided to cut production of white goods (such as smartphones, refrigerators, washing machines) by ~25% in Q2FY23 on expectation of lower demand amid high inflation
Views: We believe cumulative price hike of ~25% over the last couple of quarters has impacted the volume growth of entry level products in H1FY23. The companies are therefore going slow on production and have increase focused to liquidate their inventory first. We believe postponement of further inventory buildup by key consumer electronic companies is likely to hit contract manufacturer such as Dixon Technologies adversely
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