Whirlpool of India (500238) Q4 2002 earnings summary

Executive summary

• Revenue grew over 11.5% YoY despite a sluggish appliance market; refrigerator and washing-machine market share advanced 1.5 percentage points.

• Profit before tax fell to Rs 852.76 lakh from Rs 1,418.71 lakh, after Rs 1,313 lakh of extraordinary charges, including VRS costs and asset impairment.

• Export business grew 26% in volume and value to Rs 77 crore; no dividend was recommended.

Financial highlights

• Sales and operating income, including excise duty, were Rs 122,366 lakh versus Rs 109,706 lakh in 2001; net sales and services were Rs 109,698 lakh.

• Net profit was Rs 864.81 lakh versus Rs 911.78 lakh; basic and diluted EPS was Rs 0.68 versus Rs 0.72.

• Profit before tax was Rs 852.76 lakh versus Rs 1,418.71 lakh; asset impairment was Rs 309.08 lakh and VRS compensation was Rs 1,004 lakh, including prior-year amortisation.

• Other income rose to Rs 2,418.78 lakh from Rs 1,877.62 lakh, including a Rs 545 lakh income-tax refund with Rs 330 lakh of prior-year interest.

Outlook and guidance

• Management expected demand growth to recover gradually as the economy improved, and anticipated further growth in refrigerator volumes, value and margins.

• Product plans emphasized extending Fast Forward ice technology across refrigerator ranges, washing-machine differentiation, and growth in air conditioners and microwaves.

• Air conditioners represented a stated Rs 1,500 crore industry opportunity; low-penetration high-end cooking appliances were also identified as a growth opportunity.