Whirlpool India has reported a 5.3% growth in sales for the full year ended 31st December 2000 to Rs 10,428 m. Operating profits are also up 26.1% backed by a significant rise in operating margins from 5.7% in FY00 to 6.8% in FY01.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Earnings per share
The rise in operating margin is creditable given the fact that durable prices are on the decline due to stiff competition from multinational companies. Besides, the company has also pruned its expenses by bringing in more efficiency. This is apparent from the fact that raw material and staff costs have come down by 2.7% and 2.4% respectively. Other income during the year has gone up by 31.9% primarily because of profits on sale of assets amounting to Rs 24 m.
The company has plans to enter into the home appliances market with its proposed launch of microwaves and air conditioners in the current year. Though this is expected to boost the bottomline of the company, Korean companies like LG and Samsung have cornered a significant share in these markets within a year of their entry into India. So, realisation growth may not be commensurate with volume growth in FY02.
The company spent more than Rs 126 m as voluntary retirement scheme, which it plans to write off in five years. The write off for the current year is Rs 8.4 m.
The stock is currently trading at Rs 26 at a P/E multiple of 16.2x the FY01 earnings. On the sales of Rs 10,428 m, market capitalisation to sales works out to 0.3 times (market capitalisation is Rs 3,299 m).
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