Hotel business to do well in Q2: Abneesh Roy
«We will see that August especially, when the rainfall was at a 100-year low, 36% deficit, that has derailed the rural recovery green shoots, which had started in Q1,» says Abneesh Roy, Executive Director, Nuvama.
Let us begin with talking about the overall momentum. Do you think that there is a sense that festive sales, a pickup in rural, all of that will be witnessed across the board?
The result season is definitely picking up. Yes, we do expect that in Q3 the momentum should be better. Unfortunately, in Q2 the results which will come out for HUL, Nestle and ITC today, the rural slowdown has impacted them.
We will see that August especially, when the rainfall was at a 100-year low, 36% deficit, that has derailed the rural recovery green shoots, which had started in Q1.
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And next month, September, there was the impact of festival season shift. So, these two are impacting Q2 numbers. That is why for Hindustan Unilever also we expect around 4% kind of a revenue volume growth, EBITDA growth of around 7%.
Festival demand is going to benefit, we are seeing the numbers generally for most consumption in terms of early trends because festival demand is yet to pan out.
We are seeing that, yes, the trends are good, Pujo demand, for example, in Bengal, et cetera, has been decent. So yes, Q3 should be good, paint companies also should see good paint volumes in Q3, but Q2 will be weak for paint because of the festival demand shift and high rains in the first and third month of
