Whirlpool of India profit declines 35% to Rs 84 cr in Q4, revenue dips 4%

Consumer durables maker Whirlpool of India Ltd on Wednesday reported a 35.04 per cent decline in consolidated net profit to Rs 84.48 crore for the fourth quarter ended in March due to soft industry demand and rising commodity costs.

The company had posted a net profit of Rs 130.06 crore during the March quarter of the previous fiscal, Whirlpool of India, a subsidiary of Whirlpool Corporation said in a regulatory filing.

Its revenue from operations was down by 4.07 per cent at Rs 1,706.91 crore during the quarter under review as against Rs 1,779.39 crore in the corresponding period of the previous fiscal.

"Q4 Consolidated PAT at Rs 84.5 Cr down by 35.1% vs last year due to soft industry demand and rising commodity costs. Significant part of cost inflation was mitigated by price increase and cost take out action across all work streams," said Whirlpool of India in an earning statement.

Total expenses were at Rs 1,607.47 crore, down 1.15 per cent in Q4/FY 2021-22, as against Rs 1,626.20 crore in the same period a year ago.

"The normalisation of post-Covid demand along with high inflation across the board has hurt the durable industry. Growth vs profitability needs to be balanced and recent fiscal actions by the government should help soften the impact. Whilst this turbulent period is not over we have managed to tide over the most difficult part and remain confident about the future," said Whirlpool of India Chairman Arvind Uppal.

For the fiscal year ended March 2022, Whirlpool of India's consolidated net profit was up 61.26 per cent at Rs 567.37 crore. It had reported a net profit of Rs 351.83 crore in the previous fiscal.

Its revenue from operations was at Rs 6,196.57 crore in 2021-22. This is 5.02 per cent higher than Rs 5,899.89 crore in the year-ago period.

"We finished the year with a 5% topline growth and an FY consolidated profit growth of 61% which included a one-off gain with the Elica acquisition," said Whirlpool of India Managing Director Vishal Bhola.

Inflation headwinds continue to be a concern but have been addressed through both cost-based pricing and cost actions, he said.

In a separate filing, Whirlpool of India said its board in a meeting held on Wednesday has recommended a dividend of 50 per cent, which is Rs 5 per equity share of the face value of Rs 10 each for the financial year 2021-22.

Moreover, the board has also approved the re-appointment of A H Bhavanarayana Reddy as the Executive Director of the company for a period starting from February 2, 2023 till August 31, 2024.

Shares of Whirlpool of India on Wednesday settled at Rs 1,492.05 on BSE, down 2.76 per cent from the previous close.