GST on several appliances have been slashed to 18 percent from 28 percent. Whirlpool will benefit from these cuts in the upcoming festive season
Consumer durables major Whirlpool India posted a 23.4 percent increase in its first-quarter net profit at Rs 163.79 crore, due to the base effect of the goods-and-services (GST) tax regime. The company had posted a profit after tax of Rs 132.72 crore in the year-ago period.
The total income from operations (excise adjusted) saw a 12.8 percent year-on-year (YoY) rise to Rs 1,651.1 crore. From July 1, 2017, excise duty, and service tax, among others were replaced with GST. Hence, the company did not have to pay excise duty on the sale of goods in Q1FY19.
The GST Council recently slashed GST on televisions (up to 27 inches), refrigerators, mixer-grinders and washing machines from 28 percent to 18 percent. This will benefit large players like Whirlpool by increasing the customer demand for products.
D'Souza added that at the onset of festive season they see a favourable impact of the recent reduction of GST on appliances on consumer demand. However, he added they will also need to tackle continuing cost headwinds.