The domestic light-emitting diode (LED) lighting industry is going through a tough time after Syska Group cut their prices by nearly Rs 10 i.e. about 10-15 percent.

The move came as a shock to most of the players like Crompton Greaves Consumer Electricals Ltd and Havells India Ltd as rising commodity prices is hurting the industry.

In an analyst meet held on September 3, Crompton Greaves Consumer sounded a bit cautious on the lighting business as the LED price cuts will impact the margin of the company in the coming quarter.

Of the overall business for Crompton Greaves Consumer, about 30 percent comes from lighting and in that, LED is 30 percent, which is around nine percent of the overall business.

Credit Suisse has cut their FY19 and FY21 earnings per share (EPS) estimates by 3-4 percent to factor in the margin pressure in the lighting business and lowered the target price to Rs 320 against Rs 330.

Another player, Havells, is also under pressure and is down close to about 3.5-4 percent.

First Published:Sept 4, 2018 12:28 PM IST