NEW DELHI, March 5 -- Key listed companies in the home decor sector posted robust earnings in the December quarter. Leading manufacturers of tiles, pipes and plywood saw double-digit volume growth in Q3 FY21. The sharp expansion in operating margins were largely aided by cost rationalization measures.
However, analysts say, a key takeaway for investors from the December quarter earnings of these companies is the improvement in their working capital.
"Working capital cycle of all companies in our coverage improved as credit days offered to distributors were slashed given favourable demand-supply. Furthermore, inventory across companies corrected given the increase in cost of raw materials, leading to a reduction in inventory levels and imp...