Whirlpool of India shares jump 10% after signing key brand, tech agreements. Check details

Core Viewpoint - The recent rally in Whirlpool India's shares is attributed to the finalization of several major agreements with its parent entities, aimed at strengthening long-term growth and innovation while ensuring continued support from Whirlpool Corporation [1][7]. Group 1: Agreements and Their Implications - The company has executed a series of agreements, including a Brand License Agreement, a Technology License Agreement, a Transitional Services Agreement, a Services Agreement, and a Deed of Assignment of Intellectual Property [1][7]. - The Brand License Agreement allows Whirlpool of India to retain exclusive rights to use the 'Whirlpool' name and brand in current and future product segments [2][7]. - The Technology License Agreement provides access to specific technical know-how and intellectual property related to various household appliances [2][7]. - The Transitional Services Agreement is designed to facilitate a smooth separation of services between Whirlpool Corporation and its Indian arm [3][7]. - The new Services Agreement, valid until March 31, 2029, will replace the previous annual service arrangement and ensure a pre-defined minimum service charge for each financial year [3][7]. Group 2: Financial Performance - In Q1, Whirlpool India reported a marginal increase in net profit at ₹126 crore compared to ₹145 crore in the same quarter of the previous fiscal year [6][7]. - Revenue from operations decreased nearly 3% to ₹2,432 crore, down from ₹2,497 crore in Q1FY25 [6][7]. - As of 12:30 PM, shares of the company were trading at ₹1,357, reflecting a 9.6% increase from the last close on the NSE [6][7]. - Year-to-date, Whirlpool India shares have declined by 25% [6][7].