Sales momentum in white goods continues: Voltas, Whirlpool

Written By Unknown on Rabu, 22 Oktober 2014 | 23.25

The sales in the run-up to this Diwali has been the highest in the last few years, says Shantanu Dasgupta, Vice President, Corporate Affairs & Strategy, Whirlpool . In an interview to CNBC-TV18's Latha Venkatesh and Sonia Shenoy, Dasgupta said Onam sales were marginally below expectations, but that has been more than offset by the current rush of buyers.

He said large towns and large format stores accounted for bulk of the growth, adding that proportion of first time buyers continued to be small. On the issue of stiff competition from e-tailers, Dasgupta said 95 percent of white goods sales were still happening through traditional brick and mortar stores.

Speaking in the same discussion, Pradeep Bakshi of  Voltas said the momentum in sales seen during the June quarter has continued in the September quarter as well. In the air conditioners segment, Voltas has grown by over 20 percent, Bakshi said.

Below is verbatim transcript of the discussion:

Q: What is the sense you are getting as far as the demand this festive season is concerned? Is it as good as it was a couple of years back?

Dasgupta: It has certainly improved. The run up to this Diwali as well as sales that we are seeing this week is far more positive than we have seen over the last two-three years when the slowdown took affect in 2011. So far it is positive and we hope that even few days after Diwali we will remain to be quite buoyant.

Q: When we spoke to you it was a day before Onam and you said that people are barely looking into the shops at that time and we should checkout with you after Diwali when the festival season formally ends. Can you give us a percentage? Both Voltas and Whirlpool had a scintillating first quarter in terms of air conditioners sales which probably was because of the slightly long go monsoon but would you say that this year is 25 percent better than last year?

Dasgupta: The first quarter results were a factor of good volume growth that came in after many quarters plus the impact of price increases is a good mix. So, there were several factors there.

Coming to Onam; it wasn't that good this year but there was a bit of trepidation with respect to how Diwali would go but they are in two different areas of the country and anyway we were expecting things to improve and indeed has.

Diwali has been far more positive than Onam in August and that bodes well for the future because it suggests that things are turning around as far as growth is concerned.

Q: How good has been your festive season sale? Your second quarter and third quarter will be 25 percent better than last year. Can you give us a number?

Bakshi: Having seen first quarter well, sales also have been good, in fact industry has gained a lot, it has been a double digit growth as far as air conditioners and consumer durable categories are concerned.

Most of the categories have grown in this period because of extended summer and also festival season has been looking quite promising, in fact festival season this time also coincided Diwali with the second summer in quite a few parts of the country, in west and south part of the country. So, all in all it has been gainful for us and we have been growing in fact.

Voltas is largely into air-conditioning segment and our growth has been more than 20 percent in this quarter and in both quarters growth has been more than 20 percent, so it's been quite a fabulous Diwali and if you were to compare it with last two-three years, traction this time has been pretty good over last two-three years.

Last two years Diwali was not so great, the sales as far as air-condition business was concerned and quite a few other consumer durable products were concerned but this time its been quite good and traction has been quite healthy for us.

Whirlpool stock price

On October 22, 2014, Whirlpool of India. closed at Rs 437.90, up Rs 18.25, or 4.35 percent. The 52-week high of the share was Rs 504.80 and the 52-week low was Rs 153.55.


The company's trailing 12-month (TTM) EPS was at Rs 12.32 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 35.54. The latest book value of the company is Rs 58.33 per share. At current value, the price-to-book value of the company is 7.51.


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