Whirlpool's India unit beats Q1 profit estimate on strong demand

Whirlpool of India

29/07/2024 09:30

BENGALURU, July 29 (Reuters) - Home appliances maker Whirlpool of India  WHIR.NS  beat first-quarter profit estimates on Monday,
helped by strong demand for its air conditioners and refrigerators amid hot weather in the country.
    Whirlpool's  WHR.N  India unit posted consolidated net profit of 1.44 billion rupees ($17.3 million) in the quarter ended June 30,
compared to 748.8 million rupees an year ago.
    Analysts, on average, had expected a profit of 1.27 billion rupees, as per LSEG data.
    Revenue from operations rose nearly 23% to 24.97 billion rupees, the company said.

    KEY CONTEXT
    India's summer extends from March to May, but many cities experienced unusually warm weather in June as well, which led to an increase
in consumer spending on cooling appliances.
    Analysts noted that the country's consumer durables sector enjoyed robust demand despite higher prices, although a rise in cost of raw
material such as copper and aluminium weighed.
    Rival home appliances maker Havells India  HVEL.NS  reported a smaller-than-expected first-quarter profit, as higher expenses offset
improved demand for its air conditioners and fans.
    Blue Star  BLUS.NS  and Voltas  VOLT.NS  are yet to report results.    
    
    PEER COMPARISON    
    
                                         Valuation (next 12      Estimates (next 12          Analysts' sentiment                  
                                              months)                  months)                                           
                          RIC          PE     EV/EBITD  Price/   Revenue     Profit     Mean      # of       Stock to      Div yield (%)
                                                 A      Sales   growth(%)  growth (%)  rating*  analysts      price      
                                                                                                             target**    
 Whirlpool of India     WHIR.NS       65.71    39.18     2.78     12.34      42.90      Hold       10          1.27             0.24
     Blue Star          BLUS.NS       56.14    37.42      --      20.75      35.42       Buy       19          1.18             0.41
   Havells India        HVEL.NS       64.94    44.82     4.98     20.06      26.90       Buy       21          0.97             0.49
       Voltas           VOLT.NS       56.87    43.42     2.64     16.49      103.94     Hold       34          1.09             0.37
    
* 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
    
    
    APRIL-JUNE STOCK PERFORMANCE 

-- All data from LSEG
-- $1 = 83.7226 Indian rupees

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 (Reporting by Ashna Teresa Britto and Nishit Navin; Editing by Varun H K)
 ((AshnaTeresa.Britto@thomsonreuters.com;))