Whirlpool of India (500238) Q4 2001 earnings summary

Executive summary

• FY2001 sales and services reached Rs. 109,706 lakh, up 5% as stated; net profit fell to Rs. 912 lakh from Rs. 2,046 lakh amid weaker margins, lower other income and VRS charges.

• Market share rose 2 percentage points; leadership was achieved in Direct Cool and Frost Free refrigerators and value leadership in washing machines.

Financial highlights

• Sales and services were Rs. 109,706 lakh vs. Rs. 104,279 lakh; other income was Rs. 1,878 lakh vs. Rs. 2,765 lakh.

• Profit before tax was Rs. 1,419 lakh vs. Rs. 1,985 lakh; net profit was Rs. 912 lakh vs. Rs. 2,046 lakh.

• Interest and finance charges declined to Rs. 4,774 lakh from Rs. 5,767 lakh; depreciation rose to Rs. 3,910 lakh from Rs. 3,420 lakh.

Outlook and guidance

• Management expected industry demand growth to return gradually as the economy improved; Frost Free offerings were expected to extend leadership and generate gains in revenue and margins.

• Air-conditioners were test-marketed in 2001, with category entry planned for 2002; new cooking products and further energy-efficient, CFC-free models were planned.

• Six Sigma projects by 26 trained Black Belts across ~80 projects were expected to deliver financial and quality benefits in 2002.