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 2019 quarter results

For the quarter ended March 2019, net sales grew 8% to Rs 1355.15 crore. OPM improved 160 basis points to 12.6% which saw OP rise 23% to Rs 171.38 crore.

Other income grew 3% to Rs 25.34 crore and interest cost went up from Rs 7 lakh to Rs 3.32 crore. As depreciation grew 37% to Rs 31.96 crore, PBT grew 15% to Rs 161.44 crore.

As tax grew 17% to Rs 57.34 crore, PAT grew 14% to Rs 104.10 crore.

FY 2019 results

In FY 2019, net sales grew 12% to Rs 5397.65 crore. OPM fell 30 basis points to 11.4% which saw OP rise 10% to Rs 461.88 crore.

Other income grew 21% to Rs 104.70 crore and interest cost went up 107% to Rs 9.09 crore. As depreciation grew 10% to Rs 111.31 crore, PBT went up 16% to Rs 626.47 crore.

As tax grew 15% to Rs 219.42 crore, PAT went up 16% to Rs 407.05 crore.

Management comments

Arvind Uppal, Chairman Whirlpool of India Limited said, "We delivered strong results on the back of market share gains. Both urban and rural demands were soft for a variety of reasons some of which should get mitigated post elections. We expect discretionary expenditure to rise thereafter and remain optimistic about the future."

Sunil D'Souza, Managing Director Whirlpool of India Limited said, "Despite a delayed summer and some consumer uncertainty, we delivered another strong quarter with healthy growth on top line, margins, bottom line and market share. A strong cadence of product launches backed by ramped up execution was the key to deliver the quarter. Given the current global context, we do see the possibility of headwinds building up in some key commodities. However with strong product plans in place, we remain confident of delivering strong results ahead."

Other details

In FY 2019, the company acquired 49% stake in Elica PB Private limited and considering the other terms of investment, Elica is considered as jointly controlled company.

Valuation

The Board of directors have recommended a dividend of Rs 5 per share.

The stock trades at Rs 1379.