Whirlpool of India (500238) Q4 05/06 earnings summary

Executive summary

• FY06 net loss narrowed to Rs. 38.10 crore from Rs. 99.80 crore in FY05, an improvement of Rs. 61.70 crore; sales and income from operations rose to Rs. 1,375.76 crore from Rs. 1,085.29 crore.

• Performance gains reflected product launches, improved product mix, cost controls, better working capital and stronger domestic and export sales; no dividend was recommended due to the loss.

Financial highlights

• Sales and income from operations, including excise duty, were Rs. 1,375.76 crore vs. Rs. 1,085.29 crore; other income was Rs. 20.12 crore vs. Rs. 33.80 crore.

• Net loss was Rs. 38.10 crore vs. Rs. 99.80 crore; loss before tax was Rs. 53.33 crore vs. Rs. 99.39 crore.

• P&L sales, net of excise duty, were Rs. 1,223.92 crore; service income was Rs. 30.15 crore.

• Operating cash flow was Rs. 41.80 crore vs. Rs. 8.41 crore; cash and cash equivalents closed at Rs. 15.16 crore vs. Rs. 24.61 crore.

Outlook and guidance

• Management expected FY07 results to record a significant turnaround, citing Faridabad VRS productivity gains and recurring cost savings.

• FY07 plans included a refreshed refrigerator range, new fully automatic washing machines, and expansion into hobs, hoods and standalone ovens.

• Export focus was set on the Middle East, Africa, Oceania and parts of Europe, while building on South Asia leadership and US KitchenAid small-appliance exports.