Whirlpool of India dips 10%, hits 52-week low in a firm market

Since November 1, 2021, the stock has underperformed the market by falling 19% after the company reported 39% YoY decline in its standalone net profit at Rs 78.50 crore in Q2

Shares of Whirlpool of India hit a 52-week low of Rs 1,820, down 10 per cent on the BSE in Wednesday's intra-day amid growth concerns.

The stock of the consumer electronics company has seen huge trading activities with trading volumes on the counter jumping multiple-fold today. At 10:27 am, it was trading 6 per cent lower at Rs 1,901, as compared to a 1.3 per cent rise in the S&P BSE Sensex. A combined 1.65 million equity shares, representing 1.27 per cent of total equity of the company, had changed hands on the counter on the NSE and BSE till the time of writing of this report.

Since November 1, 2021, the stock has underperformed the market by falling 19 per cent after the company reported 39 per cent year-on-year (YoY) decline in its standalone net profit at Rs 78.50 crore for the quarter ended September 2021 (Q2FY22). In comparison, the S&P BSE Sensex was down 1.6 per cent during the same period.

Whirlpool of India said the fall in net profit during the quarter was due to supply chain volatility, unprecedented cost and fuel inflation, which was partially mitigated by price increase and cost productivity actions.

In Q2FY22, the company's total revenue from operations was up 0.05 per cent YoY at Rs 1,607 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) were down 29 per cent YoY at Rs 129 crore.

Further, the management had said the quarter saw headwinds on the cost and supply chain side. Growth was impacted by a high base effect and should recover as the economy opens up.

During the reported quarter, Whirlpool of India had acquired additional shareholding of 38.25 per cent in Elica PB India Private Limited for a consideration of Rs 424.8 crore taking its total shareholding in Elica India to 87.25 per cent. Upon the acquisition, Elica India has become a subsidiary of the Company.

Meanwhile, in the past one year, the stock has declined 9 per cent, as compared to 28 per cent rally in the S&P BSE Sensex.

"During Q2 and first half (April-September) of the financial year 2021-22 (H1FY22), Whirlpool underperformed the industry in washing machines (WMs). However, despite the weakness in Q2, Whirlpool managed to hold on to its refrigerators volume market share in H1FY22. In WM, its market share saw erosion in all time periods discussed," analysts at Emkay Global Financial Services said in consumer durables sector update.