The entry level market underperformance led to the company's revenue declining by 2 percent year-on-year to Rs 1,673 crore. The number was below street expectations of Rs 1,770 crore.
Net profit for the quarter fell by 25 percent from last year to Rs 64 crore from Rs 85 crore. Lower sales due to subdued market conditions and calibrated price correction actions impacted the company's profitability.
Operating profit or EBITDA fell by 28 percent to Rs 106 crore, lower than the street estimate of Rs 151 crore. EBITDA margin also fell by 6.3 percent from 8.6 percent last year
Earnings before interest tax depreciation and amortisation (EBITDA) remained down at Rs 106 crore in the last quarter against Rs 148 crore a year ago and the street estimate of Rs 151 crore for the quarter.
EBITDA margins stood at 6.3 percent against the poll estimate of 8.5 percent and 8.6 percent during the year-ago quarter.
The management said that the impact on profitability was partly offset by reduction in commodity costs.
Brokerage firm Nirmal Bang, while retaining its Accumulate rating on the stock, cut its price target to Rs 1,375 from Rs 1,435 earlier.
The cut in price target largely reflects demand pick-up in the entry segment and margin improvement going forward, as inflation pressures abate.
Nirmal Bang expects the company to report EBITDA margin of 6.8 percent and 8.1 percent in financial year 2024 and 2025 respectively, mainly due to lower raw material prices, growing economies of scale, increased focus on cost optimization, disciplined capital allocation and premiumisation of the
Shares of Whirlpool of India fell as much as 4 percent in early trading before recovering from the lows. The stock is currently trading 0.6 percent higher at Rs 1,356.65, but is still down 10 percent year-to-date.