Whirlpool's India unit reports 39% drop in Q2 profit as costs increase

Home appliances maker Whirlpool of India reported a 39% drop in second-quarter profit on Tuesday, as costs increased and demand for white goods was muted amid surging inflation.

Whirlpool's profit before exceptional items, its share of profit from joint ventures, and tax slid to 669.9 million Indian rupees ($8.10 million) from 1.09 billion Indian rupees, a year earlier.

It had booked a one-time fair value gain of 3.25 billion rupees last year on equity interest in kitchen appliances maker Elica India.

Under pressure from higher commodity costs, household appliance makers like Whirlpool and IFB Industries , resorted to price increases, but that ended up curbing demand at a time when consumers are stretched thin.

Whirlpool, known for its refrigerators and washing machines, said cost of raw material and components consumed climbed nearly 13% for the reported quarter.

Revenue rose marginally by 0.31% to 16.12 billion rupees, helped by the higher prices.

IFB posted a 2% fall in its second-quarter profit last week on higher expenses.

($1 = 82.5900 Indian rupees)

 

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman)