(Reuters) – Home appliances maker Whirlpool of India Ltd 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 and Havells India Ltd 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.
($1 = 81.7800 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng)
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