Whirlpool of India Q1 Review - Revenue In Line; Commodity Prices Dent Gross Margin: Motilal Oswal
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Motilal Oswal Report
Whirlpool of India Ltd.’s revenue grew 31% YoY in Q1 FY22 (in line with our estimate), with a two-year compound annual growth rate at down 18%, which is better than room air conditioner players like Voltas Ltd. (estimate: down 30%), Blue Star Ltd. (down 25%), Hitachi (down 28%).
It is the only white goods company in our coverage universe to meet our revenue expectations in Q1 FY22.
Gross margin was impacted due to commodity cost inflation and adverse revenue mix.
Ebitda stood 34% below our estimate, with margin at 4.1% (estimate: 6.5%).
The decline in gross margin could be partly attributed to Whirlpool of India’s focus on gaining market share in the mass market categories of refrigerators and washing machines.
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