For quarter ended Dec 2013, Whirlpool of India (WPL) reported a standalone sales turnover of Rs.672.77 crore, which was up 9% compared to corresponding previous quarter and against odds with the overall weak trend in the home appliances industry. Net profit came in at Rs.21.25 crore, up a huge 111% compared to corresponding previous quarter, due to better operating margins, higher Net Sales and higher other income. Operating Margins increased 172 bps to 5.5% compared to 3.8% in the corresponding previous quarter. Other income for the quarter was Rs.7.93 crore, up 67% compared to Rs.4.74 crore reported in corresponding previous quarter. Depreciation expense increased marginally by 5% to Rs.15.71 crores compared to Rs.14.94 crores in the corresponding previous quarter.
For quarter ended Dec 2013, WPL's OPM increased 172 bps to 5.5% primarily due to a 755 bps decrease in Cost of raw materials to 44.3% of Net sales and a 277 bps decrease in Other expenses (which includes expenses such as Freight, Cartage and Octroi, Power & Fuel and Service Contract and Workshop expenses) to 20.6% of the Net sales. However this was partially offset by an 802 bps increase in Purchase of stock in trade to 18.0% of Net sales and a marginal 52 bps increase in Employee benefit expenses to 11.0% of Net sales. Higher Net sales and improved Operating margins led to 58% increase in Operating profit to Rs.37.06 crore.
Interest cost, which is a nominal component of WPL's expenses, came in at Rs.0.27 crores, down 71% compared to Rs.0.92 crores in the corresponding previous quarter. Tax expense increased 245% to Rs.7.76 crores compared to Rs.2.25 crore in the corresponding previous quarter. Net profit came in at Rs.21.25 crore, which almost doubled (up 111%) to Rs.21.25 crores compared to corresponding previous quarter due to higher Net sales, better Operating margins and higher Other income.
Financial Performance for the nine-month period ended December 31, 2013
For the nine-month period ended December 30, 2013, WPL reported a Total Operating Income of Rs.2168.31 crores, up 1% compared to the corresponding previous period. Operating margin declined 106 bps YoY to 7.0% due to a huge 487 bps increase in Purchase of stock in trade to 16.5% of the Net sales. Also, in absolute terms Purchase of stock in trade increased 42% to Rs.353.87 crores and did not convert into a higher turnover as Net Sales showed a marginal increase of just 1%. Staff costs increased 85 bps to 9.3% of the Net Sales compared to 8.5% recorded in the corresponding previous quarter. However, this increase was partially supported by a decrease in Cost of raw material by 430 bps to 46.9% and decrease in Other expenses by 49 bps to 20.2%.
Decline in Operating Margins and slower growth in Net sales led to a 12% fall in the Operating profit to Rs.152.11 crore.
Other income increased by 19% to Rs 19.65 crore and interest cost decreased by 65% to Rs 0.84 crore. Depreciation grew by 6% to Rs 47.28 crore. The total tax outgo decreased 9% to Rs 36.27 crore, and Net Profit too declined 15% to Rs.87.37 crores as compared to Rs.103.00 crores in the corresponding period of last year.
Promoters Holding
As of 31 Dec 2013, promoters' holding remained unchanged at 75% compared to previous quarter. No shares of WPL are pledged.
The scrip closed up 3.68% at 189 as on Feb 04, 2014.
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