Whirlpool’s India unit posts nearly 24% drop in Q2 profit

Date:

Bengaluru (Reuters) – Whirlpool of India Ltd (WHIR.NS) reported a 23.7% drop in second-quarter profit on Friday, as the home appliances maker grappled with weak demand amid stiff competition.

Consolidated net profit fell to 365.8 million rupees ($4.39 million) in the quarter ended Sept. 30 from 479.3 million rupees a year ago.

Revenue from operations dropped more than 5% to 15.22 billion rupees.

For further results highlights, click

Key Context

Competitive intensity in the white goods sector has risen, analysts said. Pricing pressure is also expected to remain intense in the sector, leading to a reduction in operating margin to single digits in the medium term.

Whirlpool India recently rolled back prices and is focusing on reducing material and non-material costs.

The company also reported a profit decline in the previous four quarters.

Peer Voltas (VOLT.NS) reported a second-quarter profit below analysts’ estimates, hurt by higher raw material costs, while Havells India (HVEL.NS) reported higher profit on strong demand for cables.

Peer Comparison

Valuation (next 12 months)Estimates (next 12 months)Analysts’ sentiment
RICPEEV/EBITDARevenue growthProfit growthMean rating*# of analystsStock to price target**Div yield (%)
Whirlpool of India Ltd(WHIR.NS)54.8035.5311.2641.71Hold111.050.31
Voltas Ltd(VOLT.NS)43.3330.8616.2944.11Hold380.920.51
Havells India Ltd(HVEL.NS)50.6133.6013.8426.95Buy210.890.59

* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT

July-September Stock Performance

— All data from LSEG

— $1 = 83.2575 rupees

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