Whirlpool of India reports 51% profit growth on strong demand in festive season

Whirlpool of India

04/02/2025 11:55

Feb 4 (Reuters) - Home appliance maker Whirlpool of India  WHIR.NS  reported a 51% jump in third-quarter profit,
on strong demand for its products during the festive season.
    The Indian unit of U.S.-listed Whirlpool  WHR.N , which is cutting its stake by more than half to 20%, said profit
jumped to 439.6 million rupees ($5 million) in the quarter from 280 million rupees a year earlier.
    However, it came in below analysts' average estimate of 476.2 million rupees, according to LSEG data.
    Revenue from operations rose 11% to 17.05 billion rupees.
    
    
    KEY CONTEXT
    Whirlpool of India has benefited in recent quarters from its revamped strategy to regain market share lost to
competitors. This quarter, in particular, it also benefitted from strong consumer demand during the festive period that
included Diwali and Christmas.
    Moreover, the company's products' average prices is now below those of peers such LG ELectronics and Samsung
Electronics  005930.KS , while it has lengthier warranties and an improving mix of premium appliances, analysts have
said.
    Structurally, India remains under-penetrated when it comes to the household appliance market, with only 18% of
households owning a washing machine and less than 40% a refrigerator, according to a 2019-21 health survey by the
government.
    
    
    PEER COMPARISON
                                Valuation (next 12        Estimates (next 12    Analysts' sentiment
                                months)                   months)               
                        RIC     PE      EV/EBIT  Price/S  Revenue    Profit     Mean      # of      Stock to   Div yield
                                        DA       ales     growth(%)  growth(%)  rating*   analysts  price      (%)
                                                                                                    target**   
 Whirlpool of India                                                                                         
 Orient Electric                                                                                            
 Bajaj Electricals                                                                                          
 Havells India                                                                                              
 
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The 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 TO DECEMBER STOCK PERFORMANCE
    
 -- All data from LSEG
 -- $1 = 87.0530 Indian rupees

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Whirlpool India Stock Performance    https://tmsnrt.rs/3Cx75V6
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 (Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza)
 ((Ananta.agarwal@thomsonreuters.com;))