Whirlpool Posts Strong Q4, Management Optimistic on Pick-up in Demand

Whirlpool of India on Wednesday reported 55.47 per cent jumps in its net profit at Rs 55.27 crore for the fourth quarter of 2014-15 fiscal ended March 31, 2015.

Whirlpool had posted a net profit of Rs 35.55 crore during the same period in the last financial year.

The revenues in the March quarter advanced 17.5 per cent to Rs 748.18 crore from Rs 636 crore during the March quarter of last financial year.

The stock reacted positively to the results. At 11:51 a.m., the Whirlpool shares were trading 2.8 per cent higher at Rs 755. As many as 52,000 shares changed hands on the Bombay Stock Exchange compared to average of 6,521 shares traded daily in the last two weeks.

Meanwhile, Shantanu Dasgupta, vice president, corporate affairs and strategy with Whirlpool, said, "The results were better than last two financial years as volume growth picked up, the company sold more profitable products which led to better margin generation and some benefits came from supply side as well as the commodity prices as oil prices softened."

Mr Dasgupta said, that the demand situation improved. The company posted volume growth of 10 per cent in this quarter and 9 per cent for the year which is a welcome change from what we saw in last two financial years."

However, Mr Dasgupta cautions that the demand scenario is still not hunky dory.

He says, "Growth is in different pockets and it is not a secular growth and that trend seems to continue particularly when you look at entry level products which sell in semi-urban and smaller towns, demand for those products is weak." 

Talking about particular products, Mr Dasgupta said, growth in frost free refrigerators, fully automatic washing machines was been better which suggests that people can afford a bit more if they want to purchase products. 

Going ahead Mr Dasgupta says, "We are cautiously optimistic that the current financial year will not be worse than the just concluded growth."