Whirlpool India Q1 Profit Falls 29% to Rs 103 Crore

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, the EBITDA margin contracted sharply to 5 per cent from 8.7 per cent in the year-ago period.

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 later recovered some of its losses and closed 1.4 per cent lower at Rs 809.

The results highlight the pressure on margins from elevated costs even as the company recorded healthy top-line growth in the first quarter.