Whirlpool of India Q3 results: Net profit jumps 51% to Rs 43.96 cr

Home appliance maker Whirlpool of India reported a 51 per cent jump in third-quarter profit, on strong demand for its products during the festive season.

The Indian unit of US-listed Whirlpool, which is cutting its stake by more than half to 20 per cent, said profit jumped to Rs 43.96 crore ($5 million) in the quarter from Rs 28 crore a year earlier.

However, it came in below analysts' average estimate of Rs 47.62 crore, according to LSEG data.

Revenue from operations rose 11 per cent to Rs 1,705 crore.

KEY CONTEXT

Whirlpool of India has benefited in recent quarters from its revamped strategy to regain market share lost to competitors. This quarter, in particular, it also benefitted from strong consumer demand during the festive period that included Diwali and Christmas.

Moreover, the company's products' average prices is now below those of peers such LG ELectronics and Samsung Electronics, while it has lengthier warranties and an improving mix of premium appliances, analysts have said.

Structurally, India remains under-penetrated when it comes to the household appliance market, with only 18 per cent of households owning a washing machine and less than 40 per cent a refrigerator, according to a 2019-21 health survey by the government.