Whirlpool India's Q1 profit falls 29 pc to Rs 103 crore
Mumbai, Aug 5
Whirlpool of India on Wednesday reported a 29.4 per cent decline in net profit for the June quarter, as higher input and operating costs squeezed margins despite double-digit growth in revenue.
The home appliances maker posted a consolidated net profit of Rs 103 crore in the first quarter of FY27, compared to Rs 146 crore in the corresponding quarter of the previous fiscal year (Q1 FY26), according to its stock exchange filing.
Revenue from operations rose 12 per cent year-on-year to Rs 2,727 crore from Rs 2,432 crore. However, rising expenses weighed on profitability during the quarter.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) fell 34 per cent to Rs 140 crore from Rs 211 crore a year earlier.
Consequently, EBITDA margin contracted sharply to 5 per cent from 8.7 per cent in the year-ago period, as per its filing.
Profit before tax declined to Rs 138.8 crore from Rs 196.4 crore in the corresponding quarter last financial year.
Total expenses increased to Rs 2,656.9 crore during the quarter from Rs 2,289.9 crore a year ago.
The rise was largely driven by higher raw material costs, employee expenses and other operating expenditures.
Raw material and component consumption expenses climbed to Rs 1,427 crore from Rs 1,187.3 crore in the year-ago period.
Employee benefit expenses rose to Rs 242.9 crore from Rs 221.1 crore, while other expenses increased to Rs 439.3 crore from Rs 380.7 crore.
Depreciation and amortisation expenses edged up to Rs 54.5 crore from Rs 53.6 crore, while finance costs stood at Rs 14.8 crore.
Total comprehensive income for the quarter came in at Rs 103.8 crore, compared with Rs 146.6 crore a year earlier.
The company said it continues to operate in a single reportable segment, Home Appliances.
Its consolidated financial results include the performance of wholly owned subsidiary Whirlpool of India Kitchen Appliances Private Limited.
Following the earnings announcement, shares of Whirlpool India fell nearly 5 per cent in early trade. The stock, however, recovered some of its losses later in the session and closed 1.4 per cent lower at Rs 809.
— IANS
Reader Comments
Whirlpool has been losing ground to LG and Samsung in Indian homes. Maybe they need to focus more on service network and after-sales support, that's what really matters to Indian consumers. 😊
EBITDA margin down from 8.7% to 5% is concerning. But honestly, with commodity prices where they are, every appliance maker is in the same boat. The question is whether they can manage costs better than competitors in the next few quarters.
I work in procurement for a similar company and raw material costs have gone up 15-20% in the last year. Steel and copper prices are brutal. Whirlpool's 12% revenue growth actually shows they're selling more units, but margins getting squeezed is a real worry.
Stock dropped 1.4% but recovered from early 5% loss - the market seems to think this is temporary. I'd wait and see how they handle festive season Q2, that's always the big test for appliance makers in India.
At least they're transparent about the numbers. What I find interesting is that other expenses went up by Rs 58 crore - that's a huge jump. Would love more clarity on what exactly those "other expenses" are. 🤔
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