However for quarter ended Mar 2013, Whirlpool of India (WPL) reported a standalone sales turnover of Rs.626.85 crore, which was down 3% compared to corresponding previous quarter and in line with overall weak trend in the home appliances industry. Net profit came in at Rs.24.75 crore, which was down 33% compared to corresponding previous quarter due to weak margins and higher depreciation expense. Operating Margins fell 160 bps to 7.7% compared to 9.3% in the corresponding previous quarter. Other income for the quarter was Rs.4.58 crore, 32% better than Rs.3.47 crore reported in corresponding previous quarter. Depreciation expense showed a 10% increase to Rs.15.60 crores compared to Rs.14.23 crores in the corresponding previous quarter.

For quarter ended March 2013, WPL's EBITDA margin declined 160 bps to 7.7% compared to 9.3% recorded in the corresponding previous quarter, primarily due to a very high 95% increase in Purchase of stock in trade figure to Rs.133.71 compared to corresponding previous quarter. Also the Purchase of stock in trade has increased to 21.3% of the Net sales compared to 10.6% in the corresponding previous quarter. Cost of raw material consumed (RM) came in at 52.6% of the Net Sales, an increase of 140 bps compared to corresponding previous quarter, and an increase of 550 bps compared to sequentially previous quarter. Company's inability to pass on sequential increase in RM cost amid subdued economic environment dented QoQ gross margin performance. Staff costs increased 131 bps to 9.9% of the Net Sales compared to 8.6% recorded in the corresponding previous quarter. Other expenses, which includes expenses such as Freight, Cartage and Octroi, Power & Fuel and Service Contract and Workshop expenses, came in at 20.4% of the Net sales, declining 113 bps compared to corresponding previous quarter. Interest cost, which is a nominal component of WPL's expenses came in at Rs.0.63 crores, down 48% compared to Rs.1.20 crores in the corresponding previous quarter. Tax component remained flat at Rs.11.60 crore compared to Rs.11.32 crore in the corresponding previous quarter.

The demand was impacted by lower consumer confidence amid sluggish macro-environment and sharp increases in product prices (15-20%) in last two years. As per industry estimates, sales of home appliances grew by roughly 5% in 2012. Air conditioner sales declined around 5%, while sales of refrigerators, microwave ovens and washing machines grew 4%, 8% and 6%, respectively. Urban areas that account for 70% of WPL's products consumption have witnessed a sharper dip in demand than rural counterparts.

Standalone results for the year ended March 2013

For the year ended Mar 2012, Whirlpool of India (WPL) reported a standalone sales turnover of Rs.2772.73 crore, which was up 4% and Net profit came in at Rs.127.75 crore, which was also up 3% compared to corresponding previous year. Operating Margins fell a nominal 50 bps to 7.9% compared to 8.4% in the corresponding previous year. Other income for the year was Rs.23.66 crore, almost double or 92% increase from Rs.12.30 crore reported in corresponding previous year. Relatively the Cash & cash equivalents component in the Balance Sheet also showed almost 80% increase over corresponding previous year to Rs.155.03 crores. However for WPL, the other income usually includes other major components of Miscellaneous Income and Provision Write-back figures and details about them can only emerge once Annual Report is released.

WPL's EBITDA margin for the year ended March 2013 decreased 50 bps to 7.9% compared to 8.4% recorded in the corresponding previous quarter, primarily due to a high 20% increase in the cost of raw material consumed. Pressure on annual EBITDA margins were primarily due to an increase of 682 bps in the cost of raw materials to 51.5% of the Net sales compared to 44.7% in the corresponding previous year; coupled with a 239 bps increase in Purchase of stock in trade to 13.8% of Net sales and a 72 bps increase in employee expenses to 8.8% of the Net sales. However Purchase of stock in trade and employee expenses showed a 26% and 14% increase in real terms compared to corresponding previous year. Other expenses came in at 20.8% of the Net Sales (consistent with 20.4% in quarter ended Mar 2013), increasing 80 bps compared to corresponding previous year. Although PBT decreased 1% to Rs.179.17 crore, but due to 11% fall in Tax component to Rs.51.42 crores PAT showed a 3% increase to Rs.127.75 crores compared to corresponding previous year.

Management Commentary

Commenting on the results, the company said, "The home appliances industry has seen unprecedented slowdown in demand for several quarters. Whirlpool has bucked the trend and grown net revenue by about 4% and gained market share".

Promoters Holding

As of 31st March 2013, promoters' holding remained unchanged at 75% compared to previous quarter. No shares of WPL are pledged.

The scrip was trading almost 11% up at 231 as on May 15, 2013, 2.15 pm.