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.

March 2016 quarter results

For the quarter ended March 2016, sales grew 11% to Rs 860.22 crore. OPM grew 120 basis points to 11.9% which saw OP rise 23% to Rs 101.95 crore.

Other income grew 42% to Rs 14.68 crore and interest cost grew 136% to Rs 33 lakh. As depreciation fell 16% to Rs 17.30 crore, PBT grew 37% to Rs 99.00 crore.

As tax grew 82% to Rs 31.19 crore, PAT went up 23% to Rs 67.81 crore.

FY 2016 results

For FY 2016, sales grew 6% to Rs 3488.12 crore. OPM improved 90 basis points to 10.9% which saw OP grow 15% to Rs 381.02 crore.

Other income grew 43% to Rs 54.17 crore and interest cost grew 38% to Rs 88 lakh. As depreciation rose 1% to Rs 68.69 crore, PBT grew 22% to Rs 365.62 crore.

After providing for taxation, (up 31% to Rs 117.72 crore), PAT went up 18% to Rs 247.90 crore.

Other details

During FY 2016 some finished goods, spare parts and fixed assets of Rs 14.91 crore lying at the warehouse in Chennai were destroyed on account on flood. The inventory and fixed assets were fully insured. The company has sold the major portion of such finished goods and spare parts as damaged stock to parties identified by the insurer for a consideration of Rs 6.06 crore and has also received an amount of Rs 3.35 crore as a part of the settlement of the insurance claim.

The insurance claim is in the process of approval and the management expects that the remaining amount of Rs 4.70 crore net off estimated deduction of Rs 52 lakh (net of tax of Rs 32 lakh) is recoverable from the insurer as per the insurance terms and the management expects that the loss is recoverable from the insurer net-off of estimated deduction of Rs 52 lakh (net of tax expenses) as per insurance terms. The same has been disclosed as extra ordinary items after PAT.

Valuation

The share price trades at Rs 734.