Whirlpool India quarterly profit slumps as raw-material costs rise

Whirlpool of India

Mon 13:08

Nov 9 (Reuters) - Whirlpool India WHIR.NS on Monday reported a 39% decline in quarterly profit, hurt by persistent raw-material inflation.
The home appliances maker reported a consolidated net profit of 250.8 million rupees (about $2.67 million) for the July-September quarter, compared with 413.3 million rupees in the year-ago period. 

Here are some more details:
Whirlpool India has been grappling with rising crude-oil-linked commodity inflation and currency depreciation, which have pressured margins in recent quarters
Prices of crude-based raw materials such as MDI, polyol and EPS packaging — many of which the industry sources solely from the Middle East — have risen due to war-related disruptions
Expenses for the quarter rose 15% to 18.97 billion rupees, driven by higher raw-material costs, with the cost of materials and components consumed jumping 33% year-on-year
Price increases and cost-cutting measures had partly mitigated cost pressures, the company said, adding that it implemented a further price increase of about 5% from November 1
Demand for air conditioners and refrigerators, which make up about two-thirds of Whirlpool India's revenue, typically falls after summer
The company's management during the first-quarter earnings call had cautioned that the second quarter would be a "tough quarter financially"
The company reported a 13.7% increase in second-quarter revenue to 18.7 billion rupees. However, revenue fell 31.3% sequentially from 27.27 billion rupees in the preceding quarter due to seasonally weaker demand 

($1 = 93.8375 Indian rupees)

 (Reporting by Saikeerthi in Bengaluru; Editing by Maju Samuel)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))