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Whirlpool of India Ltd reported a nearly 13% jump in its third-quarter profit on Friday, supported by upbeat domestic demand for white goods.

Consolidated net profit rose to 279.9 million rupees ($3.38 million) in the quarter ended Dec. 31, from 246.9 million rupees a year earlier.

Revenue from operations in Whirlpool's Indian unit rose nearly 18% to 15.36 billion rupees for the first time in four quarters.

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KEY CONTEXT

Sales of cooling products like room air conditioners and refrigerators are expected to increase by a high single-digit percentage yearly, analysts said, adding that numerous brands are ramping up inventory in preparation for the summer season.

Competition in the white goods sector has significantly increased after new players with strong financial backing entered the market, and premium brands introducing products in the mass segment.

Parent company Whirlpool Corporation said last November that it will sell up to 24% of its stake in its Indian unit in a bid to reduce debt.

The company also reported a profit decline in the previous four quarters.

Peer Voltas reported a fall in its third-quarter profit on Tuesday, dented by higher costs.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBI Price Revenue profit Mean # of Stock to Div

TDA /Sale growth growth rating analyst price yield

s * s target** (%)

Whirlpool of 47.82 26.59 2.29 11.67 45.20 HOLD 12 0.91 0.38

India Ltd

Voltas Ltd 45.67 38.39 2.43 14.89 54.47 HOLD 34 1.15 0.42

Havells India Ltd 51.87 34.88 3.94 13.43 27.49 BUY 19 0.90 0.58

* Mean of analysts' ratings standardised to a scale of "strong buy", "buy", "hold", "sell", and "strong sell" ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 82.8550 rupees

($1 = 82.8550 Indian rupees)