Whirlpool's Indian unit quarterly profit jumps on strong demand

Whirlpool of India

02/02/2024 08:45

BENGALURU, Feb 2 (Reuters) - Whirlpool of India Ltd  WHIR.NS  reported a nearly 13% jump in its
third-quarter profit on Friday, supported by upbeat domestic demand for white goods.
    Consolidated net profit rose to 279.9 million rupees ($3.38 million) in the quarter ended Dec. 31, from
246.9 million rupees a year earlier.
    Revenue from operations in Whirlpool's Indian unit rose nearly 18% to 15.36 billion rupees for the first
time in four quarters.
 
 
    For further results highlights, click  urn:newsml:reuters.com:*:nBSE39m5VW
        
  
        KEY CONTEXT
    Sales of cooling products like room air conditioners and refrigerators are expected to increase by a high
single-digit percentage yearly, analysts said, adding that numerous brands are ramping up inventory in
preparation for the summer season. 
    Competition in the white goods sector has significantly increased after new players with strong financial
backing entered the market, and premium brands introducing products in the mass segment.
    Parent company Whirlpool Corporation  WHR.N  said last November that it will sell up to 24% of its stake
in its Indian unit in a bid to reduce debt.
    The company also reported a profit decline in the previous four quarters.   
    Peer Voltas  VOLT.NS  reported a fall in its third-quarter profit on Tuesday, dented by higher costs. 

    PEER COMPARISON
    
    
                                Valuation (next 12   Estimates (next 12      Analysts' sentiment       
                                     months)              months)                                      
                    RIC        PE     EV/EBI  Price  Revenue    profit   Mean    # of     Stock to     Div
                                      TDA     /Sale  growth     growth   rating  analyst  price        yield
                                              s                          *       s        target**     (%)
 Whirlpool of        WHIR.NS   47.82   26.59   2.29    11.67     45.20   HOLD         12     0.91         0.38
 India Ltd                                                                                             
 Voltas Ltd          VOLT.NS   45.67   38.39   2.43    14.89     54.47   HOLD         34     1.15         0.42
 Havells India Ltd   HVEL.NS   51.87   34.88   3.94    13.43     27.49   BUY          19     0.90         0.58
 
    
 * 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
    
    OCTOBER-DECEMBER STOCK PERFORMANCE
  
 
    -- All data from LSEG
    -- $1 = 82.8550 rupees
 
 

    ($1 = 82.8550 Indian rupees)

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WHIR STOCK PERF    https://tmsnrt.rs/4bhSmKg
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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))