Whirlpool Corporation is the world's leading global manufacturer and marketer of major home appliances. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world.

Whirlpool of India's ability to leverage on its parent's product and marketing expertise to launch new products / undertake innovations on existing products in the Indian market puts it in an advantageous position.

June 2016 quarter results

For the quarter ended June 2016, sales grew 17% to Rs 1406.25 crore. OPM grew 80 basis points to 13.5% which saw OP rise 25% to Rs 190.28 crore.

Other income grew 47% to Rs 18.60 crore and interest cost grew 27% to Rs 1.45 crore. As depreciation grew 19% to Rs 22.46 crore, PBT grew 28% to Rs 184.97 crore.

As tax grew 31% to Rs 63.02 crore, PAT went up 26% to Rs 121.95 crore.

Outlook

The increasing relevance of urban India, emergence of large distinct income groups, growing share of large cities within urban India and the projected shift in age groups are critical stimuli for consumer durables sector. In addition to the economic implications, there are socio-cultural consequences to demographic shift as well. Shrinking living spaces, rising awareness due to globalization, aspirations of a modern lifestyle and lack of time are shaping consumer needs and demand.

Demand for non-essential products such as LED TVs, split ACs, Laptops and, beauty and wellness products is expected to increase in urban markets. In rural markets, durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years as the government plans to invest significantly in rural electrification.

Valuation

The share price trades at Rs 930.