Whirlpool's India unit reports 39% drop in Q2 profit

IFB Industries

01/11/2022 09:25

BENGALURU, Nov 1 (Reuters) - Home appliances maker
Whirlpool of India  WHIR.NS  reported a 39% drop in
second-quarter profit on Tuesday, as costs increased and demand
for white goods was muted amid surging inflation.
    Whirlpool's profit before exceptional items, its share of
profit from joint ventures, and tax slid to 669.9 million Indian
rupees ($8.10 million) from 1.09 billion Indian rupees, a year
earlier. 
    It had booked a one-time fair value gain of 3.25 billion
rupees last year on equity interest in kitchen appliances maker
Elica India.
    Under pressure from higher commodity costs, household
appliance makers like Whirlpool and IFB Industries  IFBI.NS ,
resorted to price increases, but that ended up curbing demand at
a time when consumers are stretched thin.
    Whirlpool, known for its refrigerators and washing machines,
said cost of raw material and components consumed climbed nearly
13% for the reported quarter.
    Revenue rose marginally by 0.31% to 16.12 billion rupees,
helped by the higher prices.
    IFB  IFBI.NS  posted a 2% fall in its second-quarter profit
last week on higher expenses.
($1 = 82.5900 Indian rupees)
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Janane
Venkatraman)
 ((Yagnoseni.Das@thomsonreuters.com; Mobile: +91 6001289066))