Whirlpool of India Q2 Review- Capacity Expansion, Continued Market Share Gains To Drive Growth: Yes Securities

Yes Securities Report

Whirlpool of India Ltd.’s consolidated revenue came 2.5% below estimates. Revenue grew 12.6% yoy. The company's revenue grew in double digit despite overall industry for refrigerator and washers was flattish in Q2. Revenue growth was driven by strong volume share growth in Refrigerators and washers compared to last year as well as more premium product mix driving value growth.

The company continued to gain market share in its key categories of refrigerators and washers. Gross margin has improved ~206 bps Yoy, while Ebitda margins at 5.1% has just seen expansion of 27 bps. Higher employee costs which have risen by 28% on YoY has resulted in lower-than-expected Ebitda margin. The company will continue to focus of improving its market share profitability.

Management focus is to implement actions like-

1. Product innovation even at the entry level;

2. Launching new innovative/differentiated products;

3. Increasing confidence with respect to quality by providing enhanced warranty;

4. Increasing retail executive across the counters and

5. Pricing the product right.

All these actions will enable the company to increase the market share and grow profitability.

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