India's IFB Industries posts narrower Q3 loss on engineering unit boost

IFB Industries

30/01/2023 14:50

BENGALURU, Jan 30 (Reuters) - India's IFB Industries Ltd
 IFBI.NS  posted a narrower third-quarter loss on Monday as weak
sales of its home appliances were offset by strong results in
its business that makes motors for white goods and for
automotive applications.
    IFB's consolidated net loss narrowed to 11.4 million rupees
($139,890) in the three months ended Dec. 31, from 32.1 million
rupees a year earlier when high costs and low demand hurt
margins.
    Consumers in India have limited their budgets due to rising
inflation, which has resulted in low demand for appliances such
as washing machines and air conditioners.
    Kolkata-based IFB's home appliances business swung to a loss
of 55.9 million rupees in the quarter, from a pre-tax profit of
39.1 million rupees a year ago.
    On the other hand, IFB reported a surge in profit at its
engineering division, which also makes fine blanked components
besides motors for white goods and for the auto sector.
    The division's pre-tax profit more than doubled to 162.6
million rupees in the quarter from 60.3 million rupees a year
ago.
    IFB, which competes with Whirlpool Of India  WHIR.NS , V
Guard Industries  VGUA.NS  and Voltas  VOLT.NS , said total
revenue from operations rose 4.8% to 9.99 billion rupees.
    The engineering division contributed a little over 19% of
revenue, while the home appliances business accounted for nearly
76%.
    IFB's shares closed 2% lower ahead of the results. They have
fallen 5.4% so far this year, following a 20% fall in 2022.
 
 ($1 = 81.4920 Indian rupees)
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Savio
D'Souza)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066))