I earlier posted about Whirlpool here. The company yesterday declared their Q2FY13 numbers.
Results prima facie appears great with close to 97% year-on-year rise in profits. Since retiring debt the interest expense has reduced and other income has started contributing more towards the bottom line. Also company is free from compulsion of dividend on preferred equity.
Let us have a look at last 5 years numbers and see the latest trend in latest 5 quarters.
Last 5 years financials: (source: www.screener.in)
And the last 5 quarters: (source: www.screener.in)
It clearly shows that company has recovered drastically from the high debt days where Interest expense were eating into 17% of EBITD to a mere 1% now.
Also, 2012 being an aberration the company has now reverted back to growth from the lows of FY12. As clearly evident in half yearly numbers
(Source: http://www.edelweiss.in/market/Financials.aspx?co_code=328&tb=HalfYearly)
Based on above the company is well poised to post 3400 Cr+ revenues and 170 Cr+ net profits for FY13.This corresponds to an annualized EPS of 13.75+
Extrapolating the current growth on FY14 yields an EPS of 17.88+ meaning the stock is trading at 14x forward FY14E numbers.
Other interesting trends evident from the numbers are the increase in trade payables from 514 Cr to 626 Cr and simultaneous decrease in trade receivables from 137 Cr to 112 Cr which points towards improving brand moat and higher product demands.
The operational cash flows has been robust with increase in cash & cash equivalents from 85.9 Cr to 218.2 Cr at the end of Q2FY13.
What is closely monitorable now is that how the company fares in the forthcoming Dewali season against fierce competition. A clear trend should emerge post Mar-2013
Disc: long positions.
Results prima facie appears great with close to 97% year-on-year rise in profits. Since retiring debt the interest expense has reduced and other income has started contributing more towards the bottom line. Also company is free from compulsion of dividend on preferred equity.
Let us have a look at last 5 years numbers and see the latest trend in latest 5 quarters.
Last 5 years financials: (source: www.screener.in)
Year
|
Mar-08
|
Mar-09
|
Mar-10
|
Mar-11
|
Mar-12
|
Sales
|
1800.63
|
1943.32
|
2541.03
|
3072.19
|
3042.67
|
Operating Profit
|
96.96
|
144.11
|
245.18
|
271.39
|
229.5
|
%margin
|
5.38%
|
7.42%
|
9.65%
|
8.83%
|
7.54%
|
Other Income
|
5.16
|
2.77
|
15.26
|
15.45
|
9.35
|
EBIDT
|
102.12
|
146.88
|
260.44
|
286.84
|
238.85
|
Interest
|
17.24
|
17.32
|
8.27
|
5.65
|
4.38
|
%EBIDT
|
16.88%
|
11.79%
|
3.18%
|
1.97%
|
1.83%
|
Depreciation
|
37.35
|
39.01
|
39.68
|
44.51
|
49.7
|
Tax
|
-3.51
|
15.68
|
61.78
|
73.21
|
57.58
|
Net profit
|
32.32
|
70.52
|
145.02
|
166.03
|
123.73
|
%margin
|
1.79%
|
3.63%
|
5.71%
|
5.40%
|
4.07%
|
And the last 5 quarters: (source: www.screener.in)
Quarter
|
11-Sep
|
11-Dec
|
12-Mar
|
12-Jun
|
12-Sep
|
Sales
|
551.4
|
592.99
|
629.07
|
872.14
|
611.17
|
Operating Profit
|
38.98
|
40.86
|
60.44
|
100.76
|
47.63
|
%margin
|
7.07%
|
6.89%
|
9.61%
|
11.55%
|
7.79%
|
Other Income
|
2.49
|
1.98
|
3.47
|
6.07
|
7.28
|
EBIDT
|
41.47
|
42.84
|
63.91
|
106.83
|
54.91
|
Interest
|
0.96
|
0.94
|
1.2
|
0.91
|
0.55
|
%EBIDT
|
2.31%
|
2.19%
|
1.88%
|
0.85%
|
1.00%
|
Depreciation
|
11
|
11.91
|
14.23
|
14.01
|
15.77
|
Tax
|
15.15
|
8.82
|
11.32
|
27.36
|
10.21
|
Net profit
|
14.36
|
21.17
|
37.16
|
64.55
|
28.38
|
%margin
|
2.60%
|
3.57%
|
5.91%
|
7.40%
|
4.64%
|
It clearly shows that company has recovered drastically from the high debt days where Interest expense were eating into 17% of EBITD to a mere 1% now.
Also, 2012 being an aberration the company has now reverted back to growth from the lows of FY12. As clearly evident in half yearly numbers
(Source: http://www.edelweiss.in/market/Financials.aspx?co_code=328&tb=HalfYearly)
Half-Yearly
|
Sep-10
|
Mar-11
|
Sep-11
|
Mar-12
|
Sep-12
|
Net Sales Turnover
|
1,665.68
|
1,415.99
|
1,585.26
|
1,451.37
|
1,736.64
|
Other Income
|
16.66
|
9.14
|
5.39
|
6.91
|
13.35
|
Total Income
|
1,682.34
|
1,425.13
|
1,590.65
|
1,458.28
|
1,749.99
|
Total Expenses
|
1,516.10
|
1,301.97
|
1,461.99
|
1,351.55
|
1,588.26
|
EBITDA
|
166.24
|
123.16
|
128.66
|
106.73
|
161.73
|
%margin
|
9.88%
|
8.64%
|
8.09%
|
7.32%
|
9.24%
|
Depreciation
|
21.51
|
23
|
23.56
|
26.14
|
29.77
|
EBIT
|
144.73
|
100.16
|
105.1
|
80.59
|
131.96
|
Interest
|
1.46
|
4.19
|
2.23
|
2.15
|
1.45
|
%EBITDA
|
1.01%
|
4.18%
|
2.12%
|
2.67%
|
1.10%
|
PBT
|
143.27
|
95.97
|
102.87
|
78.44
|
130.51
|
Tax
|
48.53
|
24.68
|
37.44
|
20.14
|
37.57
|
Net Profit
|
94.74
|
71.29
|
65.43
|
58.3
|
92.94
|
%margin
|
5.63%
|
5.00%
|
4.11%
|
4.00%
|
5.31%
|
Equity
|
126.87
|
126.87
|
126.87
|
126.87
|
126.87
|
Basic EPS
|
6.84
|
5.62
|
5.15
|
4.6
|
7.33
|
%growth (YoY)
|
-
|
-
|
-25%
|
-18%
|
42%
|
Based on above the company is well poised to post 3400 Cr+ revenues and 170 Cr+ net profits for FY13.This corresponds to an annualized EPS of 13.75+
Extrapolating the current growth on FY14 yields an EPS of 17.88+ meaning the stock is trading at 14x forward FY14E numbers.
Other interesting trends evident from the numbers are the increase in trade payables from 514 Cr to 626 Cr and simultaneous decrease in trade receivables from 137 Cr to 112 Cr which points towards improving brand moat and higher product demands.
The operational cash flows has been robust with increase in cash & cash equivalents from 85.9 Cr to 218.2 Cr at the end of Q2FY13.
What is closely monitorable now is that how the company fares in the forthcoming Dewali season against fierce competition. A clear trend should emerge post Mar-2013
Disc: long positions.
