Whirlpool of India (500238) Q4 03/04 earnings summary

Executive summary

• 15-month period ended Mar. 31, 2004 produced a pre-tax loss of Rs 50.14 crore and net loss of Rs 33.65 crore, amid price erosion, competition and higher input costs.

• Export turnover reached Rs 106 crore; new product launches, manufacturing productivity initiatives and cost controls supported operations.

Financial highlights

• Sales/income from operations, including excise duty, was Rs 1,530.91 crore versus Rs 1,222.13 crore in the 12 months ended Dec. 31, 2002; periods are not directly comparable.

• Profit before interest, depreciation, extraordinary items and tax was Rs 47.41 crore; interest was Rs 36.23 crore and depreciation Rs 45.97 crore.

• Net loss included Rs 15.35 crore of VRS compensation and other miscellaneous expenses; basic and diluted EPS were both negative Rs 2.65.

• Operating cash flow was negative Rs 3.56 crore; investing cash flow was negative Rs 15.91 crore and financing cash flow positive Rs 45.97 crore.

Outlook and guidance

• Management expected appliance demand growth to remain good, supported by a strong economy and normal monsoon expectations.

• Export turnover was expected to exceed Rs 100 crore in the year ahead; planned launches targeted volume, revenue and margin growth.

• New product development, brand investment, cost competitiveness and lower service incidence remained priorities amid intense competition.