Whirlpool of India (500238) Q4 07/08 earnings summary

Executive summary

• FY08 sales reached ₹1,933 crore, up 21.5% YoY; reported net profit was ₹32.32 crore versus a ₹5.32 crore loss in FY07.

• Growth was supported by new product launches, stronger product mix, cost initiatives and working-capital management.

Financial highlights

• Net sales, excluding excise duty, were ₹1,762.25 crore versus ₹1,450.23 crore; total income was ₹1,809.65 crore versus ₹1,496.78 crore.

• Reported PBT was ₹28.81 crore versus a ₹5.64 crore loss; PBT before extraordinary items was ₹44.02 crore versus ₹12.68 crore.

• Net profit was ₹32.32 crore versus a ₹5.32 crore loss; diluted EPS was ₹1.14 versus negative ₹1.82.

• VRS expenditure of ₹15.21 crore, including prior-year amortization, reduced FY08 profit before tax.

Outlook and guidance

• Further launches across Direct Cool and Frost Free refrigerators and fully automatic washers were planned for FY09 to support volume and share growth.

• Aggressive growth plans targeted Air Conditioners and Microwaves after volumes doubled in both categories during FY08.

• Export focus was set on South East Asia, Australia and SAARC markets; the Professional refrigerator range was expected to support export growth.