Whirlpool Corporation is the world's leading global manufacturer and marketer of major home appliances, with annual revenues of approximately $19 billion in 2013, 69,000 employees, and 59 manufacturing and technology research centers around the world. 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.

March 2015 quarter results

For the quarter ended March 2015 2014, sales grew 16% to Rs 775.56 crore. OPM improved 180 basis points to 10.7% which saw OP rising 39% to Rs 82.75 crore.

Other income grew 25% to Rs 10.37 crore and interest cost fell 76% to Rs 14 lakh. Depreciation rose 24% to Rs 20.56 crore.

PBT grew 43% to Rs 72.42 crore.

Tax grew 14% to Rs 17.15 crore after which PAT jumped 55% to Rs 55.27 crore.

FY 2015 results

In FY 2015, sales grew 16% to Rs 3293.78 crore. OPM improved 260 basis points to 10.1% which saw OP rising 57% to Rs 331.29 crore.

Other income grew 36% to Rs 38.00 crore and interest cost fell 55% to Rs 64 lakh. As depreciation rose 7% to Rs 68.13 crore, PBT soared 73% to Rs 300.52 crore.

Tax grew 75% to Rs 90.01 crore after which PAT jumped 71% to Rs 210.51 crore.

Focus on cost effectiveness is paying off

The company has, since the past two years, focused on cost control and as a result it enjoys the highest margins in the industry and also within Whirlpool operations globally, despite high inflation and intense competition.

Whirlpool is also focused on improvement in margin by improving product-mix and maximizing fixed cost absorption and productivity gains through economies of scale.

Valuation

The share price trades at Rs 734.