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Your next Whirlpool appliance may cost 5% more

By · Published by Everything Blog

In short

Whirlpool of India adjusted its pricing structure as soaring expenses for commodities like copper, aluminium, and crude derivatives ate into corporate profitability. To mitigate these headwinds, the company combined strategic pricing adjustments with internal cost-productivity measures while navigating new energy efficiency mandates. Despite these cost burdens, the firm managed to achieve a 14% year-over-year increase in consolidated revenue, reaching Rs 1,873 crore. It also registered a quarterly consolidated EBITDA of Rs 40 crore and a profit before tax of Rs 34 crore.

Key points

  • Rising input costs for essential commodities like steel, copper, and aluminium prompted a…: Rising input costs for essential commodities like steel, copper, and aluminium prompted aggressive industry-wide price adjustments.
  • Compliance expenses linked to new refrigerator and air conditioner energy regulations pla…: Compliance expenses linked to new refrigerator and air conditioner energy regulations placed notable downward pressure on corporate operating margins.
  • Portfolio premiumisation and internal cost-productivity actions successfully buoyed top-l…: Portfolio premiumisation and internal cost-productivity actions successfully buoyed top-line performance despite persistent macroeconomic headwinds.

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Whirlpool's India profits faced headwinds from commodity inflation fueled by geopolitical instability, increase in crude oil prices and currency depreciation.

Also read: Consumer goods cos turn to cost cutting amid higher input prices to protect demand, revive volume growth

"Additionally, margins were impacted by cost upcharges stemming from new energy regulations in the refrigerator & air conditioner categories and investments in Luxuriem launch," it said in a regulatory filing.

The cost pressures were partially mitigated through strategic price increases and robust internal cost-productivity initiatives. However, the company implemented a price hike ahead of the peak Diwali season to further safeguard margins against ongoing inflationary pressures.

Earlier in October, several consumer electronics and appliance makers raised prices of air conditioners, LED TVs, washing machines and other products by 5-8%, as higher costs of copper, steel, aluminium and crude derivatives, along with currency volatility and rising freight expenses, squeezed margins.

Gurugram-based Whirlpool of India delivered consolidated Revenue from Operations of Rs 1,873 crore, a 14% increase over the previous year, largely driven by industry volume…

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