Whirlpool of India misses Q4 profit view as weaker sales weigh

Whirlpool of India

17/05/2023 14:25

May 17 (Reuters) - Home appliances maker Whirlpool of
India Ltd  WHIR.NS  reported a 25% drop in quarterly profit on
Wednesday, missing analysts' estimates, as sales were hit by
muted demand for its air conditioners.
    The company, known for its refrigerators, washing machines
and air conditioners, reported consolidated net profit of 626.8
million rupees in the fourth quarter, down from 838.2 million
rupees a year ago. 
    Analysts, on average, had expected profit to rise to 874.25
million rupees, according to Refinitiv IBES. 
    Revenue fell 2% Y/Y to 16.73 billion rupees, missing analyst
estimate of 18.12 billion rupees and logging a second straight
quarter of decline.
    Unseasonal rains in March and elevated inflation prompted
consumers to cut back on discretionary purchases, weighing on
Whirlpool's sales of cooling appliances and profitability,
analysts said, adding they see the trend continue in the
near-term. 
    Total cost rose 1% to 16.25 billion rupees further hurting
the company's operating profit metrics.
    Core profit fell 38% to 1.06 billion rupees, while core
profit margin contracted to 6.34% from 8.67% in the
corresponding quarter a year ago.    
    Rising competition in the household appliances sector and
launch of new products by rival brands during the quarter also
weighed on sales and offset the positive impact on margins from
price hikes across Whirlpool's product categories, analysts
added.
    Rival air conditioner makers Blue Star Ltd  BLUS.NS  and
Havells India Ltd  HVEL.NS  reported a rise in fourth-quarter
profit earlier this month.
    Whirlpool also approved a final dividend of 5 rupees per
share for the financial year 2022-23, subject to shareholders'
approval.
    The stock fell 1.35% on Wednesday ahead of the results.
Whirlpool's shares have fallen over 12% in the January-March
quarter against a 5% slide in the consumer durables index
 .NIFCODU . 
    
    
 
 ($1 = 81.7800 Indian rupees)


 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Eileen Soreng)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))