Full year results analysis.

Net sales (including other operating income) of Whirlpool of India has increased 5.03% to Rs 6196.57 crore.  Operating profit margin has declined from 8.80% to 6.71%, leading to 19.91% decline in operating profit to Rs 415.66 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 54.81% to 55.53%.   Purchase of finished goods cost rose from 9.27% to 11.31%.   Employee cost decreased from 10.49% to 10.21%.   Other expenses fell from 16.78% to 16.07%.   

Other income fell 29.35% to Rs 63.3 crore.  PBIDT fell 21.30% to Rs 478.96 crore.  Provision for interest rose 3.46% to Rs 15.87 crore.  PBDT fell 21.94% to Rs 463.09 crore.  Provision for depreciation rose 3.77% to Rs 147.46 crore. Profit before tax down 30.04% to Rs 315.63 crore.  Share of profit/loss was 45.20% lower at Rs 10.17 crore.  Provision for tax was expense of Rs 83.02 crore, compared to Rs 117.87 crore.  Effective tax rate was 12.76% compared to 25.09%.  Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 60.98% to Rs 566.37 crore.  

Management Comments :
 Arvind Uppal, Chairman Whirlpool of India Limited said, `The normalisation of post Covid demand along with high inflation across the board has hurt the durable industry. Growth vs profitability needs to be balanced and recent fiscal actions by the government should help soften the impact. Whilst this turbulent period is not over we have managed to tide over the most difficult part and remain confident about the future.`

Vishal Bhola, Managing Director Whirlpool of India Limited said, `We finished the year with a 5% topline growth and a FY consolidated profit growth of 61% which included a one off gain with the Elica acquisition. The quarter results showed a 4% decline in topline and a 35% decline in profit. Volumes were impacted by soft industry demand in the beginning of the quarter however an early and intense summer saw a strong comeback in March. Inflation headwinds continue to be a concern but have been addressed through both cost-based pricing and cost actions.`

Other developments

Board of Directors of the Company at its meeting held today have recommended a Final Dividend of Rs. 5 per equity share of the face value of Rs. 10/- each (50%) for the financial year 2021-22. 

During the financial year, the Company acquired additional shareholding of 38.25% in Elica PB Whirlpool Kitchen Appliances Private Limited (formerly known as Elica PB India Private Limited) (“ Elica India”) for a consideration of Rs 424.8 Cr 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 Cr in the Statement of Profit and Loss of consolidated financial statements.

Equity capital stood at Rs 126.87 crore as of 31 March 2022 to Rs 126.87 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 75.00% as of 31 March 2022 ,compared to 75.00% as of 31 March 2021 .  

Loan funds rose to Rs 31.15 crore as of 31 March 2022 from Rs 17.42 crore as of 31 March 2021.  Inventories rose to Rs 1,311.46 crore as of 31 March 2022 from Rs 1,273.78 crore as of 31 March 2021.  Sundry debtors were higher at Rs 429.79 crore as of 31 March 2022 compared to Rs 378.97 crore as of 31 March 2021.  Cash and bank balance declined from Rs 2,063.18 crore as of 31 March 2021 to Rs 1,616.48 crore as of 31 March 2022.   Fixed assets increased to Rs 869.07 crore as of 31 March 2022 from Rs 737.88 crore as of 31 March 2021.  Intangible assets increased from Rs 10.37 crore to Rs 1,010.32 crore.  

Cash flow from operating activities decreased to Rs 97.77 crore for year ended March 2022 from Rs 524.14 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 169.79 crore, compared to Rs 100.68 crore during the year ended March 2021.