Whirlpool of India: Result update

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)

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.