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Yes Securities Report
Whirlpool of India Ltd.'s standalone revenue came in below ours and consensus estimates with, revenue declining 18.3% YoY. This decline is largely on sluggish demand for the entry level products which is well known and primary sales to the dealers have been very minimal as channel inventory was high and they were gearing for new revamped product launches ahead of summer season.
Our channel checks suggest that the old inventory in the channel has been cleared and channel filling would start aggressively from Q4 ahead of peak summer season and Whirlpool is going to offer dealer friendly schemes to push the sales in peak summer season.
On the margin front, Whirlpool continues to see gross margin erosion of 85 basis points YoY, as they were holding high-cost inventory with them. Ebitda margin contracted 356 bps on higher expense towards commercialisation of the new front load washing machine plant.
Whirlpool has now started to launch slew of innovative products in mid to premium segment in washing machines and refurbishing its product portfolio in refrigerator to give more value to entry level customers and providing best after sales service to improve customer satisfaction.
We feel worst in terms of market share loss and margins in currently priced in.
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