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Whirlpool of India is a 75% subsidiary of the Whirlpool Corporation, the world's #1 manufacturer and marketer of major home appliances.
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.
September 2017 quarter results
For the quarter ended September 2017, net sales grew 37% to Rs 1159.67 crore. OPM fell 80 basis points to 9.8% which saw OP grow 27% to Rs 113.50 crore.
Other income grew 49% to Rs 27.68 crore and interest cost went up 8% to Rs 1.69 crore. As depreciation grew 23% to Rs 25.49 crore, PBT grew 32% to Rs 114.00 crore.
As tax jumped 48% to Rs 40.55 crore (tax incidence grew from 31.8% to 35.6%), PAT went up 25% to Rs 73.45 crore.
Six months results
For the six months, net sales grew 24% to Rs 2623.71 crore. OPM fell 90 basis points to 12.4% which saw OP rise 16% to Rs 324.26 crore.
Other income grew 33% to Rs 49.34 crore and interest cost went up 13% to Rs 3.40 crore. As depreciation grew 24% to Rs 53.30 crore, PBT grew 17% to Rs 316.90 crore.
As tax jumped 23% to Rs 110.73 crore (tax incidence grew from 33.3% to 34.9%), PAT went up 14% to Rs 206.17 crore.
Management comments
Commenting on the result, Arvind Uppal Chairman said: "This has been a very strong quarter performance aided by an early Diwali but adversely impacted due to GST transition. We are starting to see the re-emergence of raw material headwinds but remain extremely positive about the future on the back of strong consumer demand".
Sunil D'souza MD, Whirlpool said, "We executed well during the GST transition and saw strong volume momentum in the quarter as trader restocked their inventories. This momentum continued for Whirlpool to the pre-Diwali season on the back of continued distribution expansion, consumer-winning, innovative product launches in refrigeration and washers and focused execution on the shop-floors. Continued focus on cost management and driving efficiencies helped us deliver flow-through on the bottom line. Despite some commodity headwinds we continue to remain bullish on the long term outlook on the demand for appliances and the growth potential for our business in India."
Other detail
During the quarter the company has purchased notes amounting to Rs 320.30 crore issued by a fellow subsidiary on 14 Sept 2017 having maturity period of 3 years from the date of issue with one year lock-in.
Valuation
The share price trades at Rs 1406.
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