Whirlpool of India reports 20.6% profit decline in September quarter

Whirlpool of India Limited announced its financial results for the quarter ending September 2024, revealing a 20.6% year-on-year decrease in net profit, which stood at ₹41 crore compared to ₹52 crore in the same period last year. The company's revenue also experienced a decline, falling by 3.8% to ₹1,647 crore from ₹1,713 crore in the corresponding quarter of the previous year.

Furthermore, operational profitability showed a significant weakening. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) dropped by 33.8% year-on-year to ₹57.6 crore, down from ₹87 crore a year ago. Consequently, the company's EBITDA margin contracted to 3.5% from 5% in the same quarter last year, indicating reduced efficiency in generating profit from core business operations.

Impact This report highlights a challenging period for Whirlpool of India, with both top-line and bottom-line figures declining. Investors will be keen to understand the underlying reasons for this downturn and the company's strategy to reverse the trend. A sustained period of weak financial performance could affect investor confidence and the stock's valuation. Rating: 6/10.

Difficult Terms EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. This financial metric is used to measure a company's operating performance and profitability before accounting for interest expenses, taxes, depreciation, and amortization.