Whirlpool's India unit posts nearly 24% drop in Q2 profit

Whirlpool of India

03/11/2023 07:35

BENGALURU, Nov 3 (Reuters) - Whirlpool of India Ltd  WHIR.NS  reported a 23.7% drop in second-quarter profit on Friday, as the home appliances maker
grappled with weak demand amid stiff competition.
    Consolidated net profit fell to 365.8 million rupees ($4.39 million) in the quarter ended Sept. 30 from 479.3 million rupees a year ago.
    Revenue from operations dropped more than 5% to 15.22 billion rupees.
 
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3C36FR
        
  
        KEY CONTEXT
    Competitive intensity in the white goods sector has risen, analysts said. Pricing pressure is also expected to remain intense in the sector, leading to a
reduction in operating margin to single digits in the medium term.
    Whirlpool India recently rolled back prices and is focusing on reducing material and non-material costs. 
    The company also reported a profit decline in the previous four quarters.   
    Peer Voltas  VOLT.NS  reported a second-quarter profit below analysts' estimates, hurt by higher raw material costs, while Havells India  HVEL.NS  reported
higher profit on strong demand for cables. 

    PEER COMPARISON
                                 Valuation (next 12   Estimates (next 12 months)          Analysts' sentiment                                          
                                 months)                                                                                                               
                    RIC          PE     EV/EBITDA     Revenue    Profit growth            Mean rating*       # of analysts  Stock to price target**    Div yield
                                                      growth                                                                                           (%)
 Whirlpool of        WHIR.NS     54.80  35.53         11.26      41.71                    Hold               11             1.05                       0.31
 India Ltd                                                                                                                                             
 Voltas Ltd          VOLT.NS     43.33  30.86         16.29      44.11                    Hold               38             0.92                       0.51
 Havells India Ltd   HVEL.NS     50.61  33.60         13.84      26.95                    Buy                21             0.89                       0.59
    
 * 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
    
    JULY-SEPTEMBER STOCK PERFORMANCE
  
 
    -- All data from LSEG
    -- $1 = 83.2575 rupees
 
 

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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Eileen Soreng)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))