An employee stands next to a Whirlpool washing machine inside a home appliances showroom.
Credit: Reuters File Photo
Home appliances maker Whirlpool of India Ltd reported a 10.6 per cent 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 Rs 74.88 crore from Rs 83.73 crore a year earlier.
Revenue fell 2 per cent to Rs 2,039 crore, 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 per cent-79 per cent sales, saw a 13 per cent decline. For the current financial year, it expects Asia sales to grow at a marginal 2 per cent-4 per cent 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 per cent on Monday after the results. Whirlpool's shares have risen more than 12 per cent in the April-June quarter against a 13 per cent rise in the consumer durables index
($1 = Rs 82.7250)