Capitaline

Results 20-Nov-21

Analysis

Whirlpool of India

Standalone PAT down 39% largely on weak operating show

Standalone net sales (including other operating income) of Whirlpool of India for the quarter ended Sep 2021 has increased 0.48% to Rs 1,607.10 crore. Operating profit margin has declined from 11.33% to 8.05%, leading to 28.57% decline in operating profit to Rs 129.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 57.71% to 55.57%. Purchase of finished goods cost rose from 3.59% to 9.27%. Employee cost increased from 9.60% to 9.73%. Other expenses fell from 17.53% to 16.92%. Lower OP was largely due to supply chain volatility, unprecedented cost and fuel inflation, which was partially mitigated by price increase and cost productivity actions. Other income fell 47.96% to Rs 18.13 crore. PBIDT fell 31.70% to Rs 147.53 crore. Provision for interest up 522.11% to Rs 5.91 crore. PBDT fell 34.15% to Rs 141.62 crore. Provision for depreciation down 23.04% to Rs 32.64 crore. Profit before tax down 36.87% to Rs 108.98 crore. Provision for tax was expense of Rs 28.38 crore, compared to Rs 44.02 crore. Effective tax rate was 26.56% compared to 25.50%. Profit after tax fell 38.98% to Rs 78.49 crore.

Consolidated net sales (including other operating income) of Whirlpool of India has increased 0.48% to Rs 1607.1 crore. Operating profit margin has declined from 11.33% to 8.05%, leading to 28.57% decline in operating profit to Rs 129.40 crore. Other income fell 47.96% to Rs 18.13 crore. PBIDT fell 31.70% to Rs 147.53 crore. Provision for interest rose 522.11% to Rs 5.91 crore. PBDT fell 34.15% to Rs 141.62 crore. Provision for depreciation fell 23.04% to Rs 32.64 crore. Profit before tax down 36.87% to Rs 108.98 crore. Share of profit/loss was 32.23% higher at Rs 8 crore. Provision for tax was expense of Rs 28.38 crore, compared to Rs 44.02 crore. Effective tax rate was 6.43% compared to 24.63%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 206.82% to Rs 413.19 crore.

During the current quarter, Company has acquired additional shareholding of 38.25% in Elica PB India Private Limited (“ Elica India”) for a consideration of Rs 424.8 Cr Lacs taking its total shareholding in Elica India to 87.25%. Upon the acquisition, Elica India has become a subsidiary of the Company. As per requirements of Ind AS, the Company has fair valued its existing interest in Elica India and recognised a gain of Rs 324.6 crore in the Statement of Profit and Loss of consolidated financial statements, resulting in consolidated PAT growth of 206.8% over same period last year.

Half-yearly performance

Standalone net sales (including other operating income) of Whirlpool of India has increased 12.23% to Rs 2,947.71 crore. Operating profit margin has declined from 8.67% to 6.27%, leading to 18.85% decline in operating profit to Rs 184.87 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 51.99% to 56.43%. Purchase of finished goods cost rose from 5.76% to 10.01%. Employee cost decreased from 12.95% to 10.49%. Other expenses fell from 19.43% to 16.72%. Other income fell 34.47% to Rs 32.13 crore. PBIDT fell 21.61% to Rs 217 crore. Provision for interest up 15.40% to Rs 9.59 crore. PBDT fell 22.76% to Rs 207.41 crore. Provision for depreciation down 7.09% to Rs 65.74 crore. Profit before tax down 28.36% to Rs 141.67 crore. Provision for tax was expense of Rs 37.73 crore, compared to Rs 52.67 crore. Effective tax rate was 27.03% compared to 26.63%. Profit after tax fell 29.82% to Rs 101.83 crore.

Consolidated net sales (including other operating income) of Whirlpool of India has increased 12.23% to Rs 2947.71 crore. Operating profit margin has declined from 8.67% to 6.27%, leading to 18.85% decline in operating profit to Rs 184.87 crore. Other income fell 34.47% to Rs 32.13 crore. PBIDT fell 21.61% to Rs 217 crore. Provision for interest rose 15.40% to Rs 9.59 crore. PBDT fell 22.76% to Rs 207.41 crore. Provision for depreciation fell 7.09% to Rs 65.74 crore. Profit before tax down 28.36% to Rs 141.67 crore. Share of profit/loss was 90.81% higher at Rs 10.17 crore. Provision for tax was expense of Rs 37.73 crore, compared to Rs 52.67 crore. Effective tax rate was 7.92% compared to 25.93%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 191.65% to Rs 438.70 crore.

Management Comment

Arvind Uppal, Chairman Whirlpool of India Limited said, "Our results this quarter were positively impacted by the acquisition of a majority stake in Elica India a brand leader in the premium cooking space. This is one of our key strategic pillars for driving future growth and profitability.The quarter saw headwinds on the cost and supply chain side. Growth is impacted by a high base effect and should recover as the economy opens up."

Vishal Bhola, Managing Director Whirlpool of India Limited said, “With COVID replated disruptions abating, we saw sequential QoQ revenue growth of ~20%. YoY growth was ~1% as the last year benefitted from the pent up demand. Demand came back stronger in the mid and premium segment which was however impacted most with supply side volatility. Unprecedented cost and fuel inflation put pressure on our margins which was mitigated partially through cost led price increases and productivity actions. In line with our ambition to accelerate profitable growth, we acquired additional 38% share holdinging in Elica PB India Private Limited (Elica India) for a consideration of Rs 424.8 crore. taking our total shareholding to about 87%. The acquisition resulted in a one off gain of Rs 324 crore due to fair valuation of existing assets.”

Other developments

Equity capital stood at Rs 126.87 crore as of 30 September 2021 to Rs 126.87 crore as of 30 September 2020. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 30 September 2021 ,compared to 75.00% as of 30 September 2020 .

Standalone Loan funds remained nil. Inventories rose to Rs 1,277.27 crore as of 30 September 2021 from Rs 794.05 crore as of 30 September 2020. Sundry debtors were higher at Rs 331.55 crore as of 30 September 2021 compared to Rs 211.86 crore as of 30 September 2020. Cash and bank balance declined from Rs 1,948.53 crore as of 30 September 2020 to Rs 1,188.10 crore as of 30 September 2021. Investments rose to Rs 597.06 crore as of 30 September 2021 from Rs 172.22 crore as of 30 September 2020 . Fixed assets increased to Rs 736.71 crore as of 30 September 2021 from Rs 717.65 crore as of 30 September 2020. Intangible assets increased from Rs 4.06 crore to Rs 11.96 crore.

Whirlpool of India: Results
	2109 (3)	2009 (3)	Var.(%)	2109 (6)	2009 (6)	Var. (%)	2103 (12)	2003 (12)	Var.(%)
Sales	1607.10	1599.47	0	2947.71	2626.52	12	5899.89	5992.52	-2
OPM (%)	8.1	11.3		6.3	8.7		8.8	11.2
OP	129.40	181.16	-29	184.87	227.80	-19	518.98	673.35	-23
Other inc.	18.13	34.84	-48	32.13	49.03	-34	89.60	128.71	-30
PBIDT	147.53	216.00	-32	217.00	276.83	-22	608.58	802.06	-24
Interest	5.91	0.95	522	9.59	8.31	15	15.34	19.85	-23
PBDT	141.62	215.05	-34	207.41	268.52	-23	593.24	782.21	-24
Dep.	32.64	42.41	-23	65.74	70.76	-7	142.10	129.32	10
PBT	108.98	172.64	-37	141.67	197.76	-28	451.14	652.89	-31
EO Income	-2.11	0.00		-2.11	0.00		0.00	0.00
PBT after EO	106.87	172.64	-38	139.56	197.76	-29	451.14	652.89
Taxation	28.38	44.02	-36	37.73	52.67	-28	117.87	176.60	-33
PAT	78.49	128.62	-39	101.83	145.09	-30	333.27	476.29	-30
EPS (Rs)*	#	#		#	#		26.3	37.5
* Annualized On Current Equity Of Rs 126.87 Crore. Face Value: Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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