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Whirlpool Q4 Result Review: Shares Rebound As Analysts Bet On Revenue Pickup

The company's net profit fell 30.09% to Rs 55.6 crore in January-March, while the revenue declined 2.82% to Rs 1,565.23 crore.

<div class="paragraphs"><p>A Whirlpool washing machine in a store in New Delhi. (Photo: Anindito Mukherjee/Reuters)</p></div>
A Whirlpool washing machine in a store in New Delhi. (Photo: Anindito Mukherjee/Reuters)

Shares of Whirlpool of India Ltd. rebounded after some analysts said the company's revenue would improve once the industry stabilises. The stock had opened lower after the company's fourth-quarter net profit and revenue declined.

The net profit fell 30.09% to Rs 55.6 crore in the January-March quarter, while the revenue declined 2.82% to Rs 1,565.23 crore, as per an exchange filing.

"Despite near-term demand headwinds, we continue to believe Whirlpool's strong parentage and the recent action of launching new products across the range, taking a calibrated price correction in refrigerators, and double-digit growth in Elica will bode well for the company going forward," Yes Securities (India) Ltd. said while maintaining a 'buy' rating on the stock.

Whirlpool of India, Q4 FY23 (Consolidated, YoY)

  • Revenue down 2.82% at Rs 1565.23 crore.

  • Ebitda down 33.89% at Rs 89.81 crore.

  • Ebitda margin at 5.74% vs. 8.43%.

  • Net profit is down 30.09% at Rs 55.6 crore.

  • The board approved a final dividend of Rs 5 per share for the financial year 2022–23.

Shares of the company rose 0.26% to Rs 1355 apiece after having fallen 4.19% to Rs 1,291.60 apiece during morning trade on Thursday. This compares with a 0.16% gain in the benchmark S&P BSE Sensex.

The total traded quantity stood at 15.7 times the 30-day average volume.

Of the 17 analysts tracking the stock, nine maintain a 'buy', four suggest a 'hold', and four recommend a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 5.3%.

What analysts have to say about the company

Yes Securities

  • Maintains 'buy' call with a target price of Rs 1,690, implying a potential upside of 25.4%.

  • Whirlpool’s consolidated revenue came in below house and consensus estimates, with revenue declining 2% YoY.

  • Revenue decline is attributed to muted market growth in refrigerators and air conditioners in Q4.

  • Margins were lower-than-expected due to lower sales owing to subdued market conditions and a calibrated price correction.

  • Gross margins on a stand-alone basis were stable despite lower pricing, which is a key positive.

  • Expects company to post strong revenue growth once the industry stabilises.

  • Says management is confident of the strong leverage of recent product launches in the mid- and premium-ranges.

  • This, combined with renewed market excellence and cost reduction, will help the company grow profitably.

  • Recent portfolio expansion of Elica is yielding good results.

  • Elica India's revenue is growing at double digits with healthy margins.

  • Whirlpool's strong parentage, new product launches, price correction in refrigerators, and double-digit growth in Elica will bode well going forward.

  • Builds in moderate estimates for FY24.

  • Prolonged demand slowdowns in key categories of refrigerators could pose a risk to house estimates.

Nirmal Bang Securities Pvt.

  • Maintains 'accumulate' and slashed the target price to Rs 1,375 from Rs 1,435.

  • Strong growth in Elica, offset by muted entry segment performance.

  • Bottomline declined due to lower sales amid subdued demand and calibrated price corrections.

  • The company offers structural growth opportunities in the long term, with the strongest balance sheet and cash flows.

  • Marginally tweaked numbers reflect demand pick-up in the entry segment, margin improvement going forward.