(Reuters) – Home appliances maker Whirlpool of India Ltd reported a 10.6% drop in first-quarter profit on Monday, impacted by softer demand.
The company, known for its refrigerators, washing machines and air conditioners, said consolidated net profit for the three months ended June 30 fell to 748.8 million rupees ($9.05 million) from 837.3 million rupees a year earlier.
Revenue fell 2% to 20.39 billion rupees, hurting the company’s operating profit metrics.
Intermittent unseasonal rainfall across regions and the continuation of inflationary pressure have affected consumer spending, analysts said.
Parent company Whirlpool Corp, which reported results late in July, said its Asia region sales, for which India contributes 73%-79% sales, saw a 13% decline. For the current financial year, it expects Asia sales to grow at a marginal 2%-4% as demand weakness continues.
High competition in the household appliances sector might restrict margin revivals for the company, said analysts.
Rivals Blue Star and Havells India reported a rise in first-quarter profit earlier this month.
The stock fell as much as 2.5% on Monday after the results. Whirlpool’s shares have risen more than 12% in the April-June quarter against a 13% rise in the consumer durables index
($1 = 82.7250 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami)
