Whirlpool of India Limited

Whirlpool India reported its highest-ever quarterly revenue of ₹2,497 crores in Q1 FY25, a 22.5% YoY increase. This growth was underpinned by a strong summer season, which drove double-digit volume growth in refrigerators and air conditioners. EBITDA margins expanded significantly by 230 bps to 8.4%, primarily due to the 'P4G' cost productivity program, which contributed a 1.5% to 2% improvement in material costs. Management noted that this quarter successfully arrested a multi-year decline in profitability caused by COVID-19 and regulatory changes.

The company claimed significant market share gains in 'triple digit basis points' across its core categories of refrigerators and washers. India has been identified as one of the four global strategic focus areas for Whirlpool Corporation. The strategy involves 'profitable market share growth,' where investments are strictly ROI-based. Management highlighted that they are no longer just chasing volume but are focused on growing share while simultaneously improving margins through premiumization and mix management.

New product launches, such as the DC glass door refrigerators and semi-automatic washers with 'dynamics technology' for better detergent mixing, were key growth drivers. The company also highlighted a strategic collaboration with HUL's Surf Excel brand, involving co-branded media campaigns and on-pack endorsements to drive penetration in the washing machine category. Additionally, Whirlpool increased its comprehensive warranty to 4 years for semi-automatic and 5 years for front-load washers to build consumer trust.

Elica, Whirlpool's cooking appliance subsidiary, continues to perform well with an 8% revenue growth and a 40% increase in consolidated profit contribution. While Elica's margins peaked at 17.5% in FY24, management expects ongoing margins to settle in the 15-16% range as they reinvest profits to expand distribution and brand awareness. Elica is positioned as a pioneer in the low-penetration cooking market, with new innovations like auto-sense chimneys featuring brushless DC motors.

Management acknowledged that the Indian consumer durables market is significantly more competitive than in the pre-COVID era (2018-2019). The entry of new players like Beko and aggressive pricing from incumbents have structurally lowered industry margins. Consequently, management signaled that returning to historical 14-18% PBT margins is unlikely, instead targeting 'high single digit' margins as a sustainable long-term goal. They also warned of upcoming headwinds from rising ocean freight and commodity costs.