Nomura warns about air conditioning sector in India

Fri Dec 21, 2012 10:50am IST

Employees work at an air conditioner production line in a factory at Jhajjar district in Haryana December 12, 2012. REUTERS/Mansi Thapliyal

Employees work at an air conditioner production line in a factory at Jhajjar district in Haryana December 12, 2012.

Credit: Reuters/Mansi Thapliyal

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

Reuters Market Eye - Nomura says it has come away "with extremely negative takeaways" for the Indian heating, ventilation and air conditioning (HVAC) market after meeting with Blue Star's (BLUS.NS) executive in charge of the segment.

Nomura says Blue Star sees the HVAC market suffering from declining orders and intensifying competition, according to a note dated on Thursday.

As such, margins are under pressure, while customers are delaying payments, Nomura says citing Blue Star's comments.

Nomura expects the negative trends in HVAC to also impact Voltas (VOLT.NS), noting the air conditioner maker has recently been aggressive in the domestic market following a slowdown in new order inflow in the overseas markets.

Blue Star shares fall 1 percent, while Voltas shares are down 2.1 percent.

(Reporting Manoj Dharra)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

RAINFALL THIS YEAR

REUTERS SHOWCASE

Election 2014

Election 2014

Thousands mob Modi as election race starts in Varanasi.  Full Article 

Monsoon Forecast

Monsoon Forecast

Met office rules out surplus monsoon in 2014.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage