• Induction cooktop demand: Stovekraft has witnessed a 3X surge in its daily run rate for induction cooktops over the past week across both online and offline channels.
• Input cost pressures: The company is facing supply-side cost increases across metals, plastic parts, and imported electronic components from China due to sea freight disruptions and RMB appreciation.
• Gross margin impact: Because cost increases are passed on through quarterly price adjustments with a lag, gross margins are projected to decline by 1% to 2% in the current quarter.
• Revenue growth outlook: Management expects strong absolute revenue growth in the current quarter and remains confident in delivering double-digit revenue growth overall.