Whirlpool's India arm misses Q4 profit view on stiff competition, higher input costs

Voltas

20/05/2024 14:38

BENGALURU, May 20 (Reuters) - Appliances maker Whirlpool of India  WHIR.NS  reported a smaller-than-expected
fourth-quarter profit on Monday, hurt by stiff competition and higher input costs, while demand remained steady for its
cooling appliances.
    Consolidated net profit rose nearly 24% to 775.9 million rupees ($9.3 million) in the three months ended March 31,
missing analysts' estimates of 899.6 million rupees, according to LSEG data.
    Revenue from operations in the Indian unit of NYSE-listed Whirlpool Corp  WHR.N  rose nearly 4% to 17.34 billion
rupees.
    Expenses surged 2.2%, led by a nearly 31% rise in input costs.  
    For further results highlights, click  here 
    
    KEY CONTEXT
    
    Record high temperatures in India have led to a surge in demand for cooling products like air conditioners and
refrigerators, resulting in higher sales for home appliance makers such as Whirlpool India.
    However, analysts said Whirlpool's Indian arm is dealing with fierce competition from new players, premium brands
diversifying into mass markets and multi-brand retailers promoting private labels.
    In February, parent company Whirlpool Corporation sold 24% of its stake in the India unit for about $468 million,
aiming to reduce its debt.
    Rival air conditioner makers Havells India  HVEL.NS  and Blue Star  BLUS.NS  reported a rise in quarterly profit, while
Voltas  VOLT.NS   missed quarterly profit estimates due to surging expenses.

    
    
    PEER COMPARISON
                                   Valuation (next 12 months)    Estimates (next 12       Analysts' sentiment       
                                                                      months)                                       
                      RIC         PE       EV/EBITD  Price/Sale  Revenue    profit   Mean     # of     Stock to     Div
                                           A         s           growth     growth   rating   analyst  price        yield
                                                                                     *        s        target **    (%)
 Whirlpool of India    WHIR.NS      63.06     31.44        2.31    7.83      59.89   HOLD          11     1.13         0.32
 Blue Star             BLUS.NS      55.91     36.22        NULL    20.52     38.27   BUY           18     1.12         0.38
 Havells India         HVEL.NS      68.04     45.48        5.22    14.28     27.28   HOLD          19     1.07         0.41
                                                                                                                    
 Voltas                VOLT.NS      53.00     39.29        2.57    15.86    150.79   HOLD          35     1.00         0.33
                                                                                                                    
  
 * 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
    
    JANUARY-MARCH STOCK PERFORMANCE
  
 
 
    -- All data from LSEG
    -- $1 = 83.2810 Indian rupees

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January-March stock performance_Whirlpool India    https://tmsnrt.rs/3yqrFEp
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 (Reporting by Navamya Ganesh Acharya in Bengaluru, Additional reporting by Manvi Pant; Editing by Ravi Prakash Kumar)
 ((Manvi.pant@thomsonreuters.com))