Whirlpool's India unit posts fall in Q1 profit on soft demand

Blue Star

07/08/2023 10:34

Aug 7 (Reuters) - Home appliances maker Whirlpool of
India Ltd  WHIR.NS  reported a 10.6% drop in first-quarter
profit on Monday, impacted by softer demand.
    The company, known for its refrigerators, washing machines
and air conditioners, said consolidated net profit for the three
months ended June 30 fell to 748.8 million rupees ($9.05
million) from 837.3 million rupees a year earlier.
    Revenue fell 2% to 20.39 billion rupees, hurting the
company's operating profit metrics.
    Intermittent unseasonal rainfall across regions and the
continuation of inflationary pressure have affected consumer
spending, analysts said.
    Parent company Whirlpool Corp  WHR.N , which reported
results late in July, said its Asia region sales, for which
India contributes 73%-79% sales, saw a 13% decline. For the
current financial year, it expects Asia sales to grow at a
marginal 2%-4% as demand weakness continues.
    High competition in the household appliances sector might
restrict margin revivals for the company, said analysts.
    Rivals Blue Star  BLUS.NS  and Havells India  HVEL.NS 
reported a rise in first-quarter profit earlier this month.
    The stock fell as much as 2.5% on Monday after the results.
Whirlpool's shares have risen more than 12% in the April-June
quarter against a 13% rise in the consumer durables index
 .NIFCODU. 


($1 = 82.7250 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Sohini Goswami)
 ((AshnaTeresa.Britto@thomsonreuters.com;))