Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Whirlpool turns around - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 9, 2001

    Whirlpool turns around

    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.

    (Rs m) FY00 FY01 Change
    Sales 9,903 10,428 5.3%
    Other Income 210 277 31.9%
    Expenditure 9,341 9,720 4.1%
    Operating Profit (EBDIT) 562 708 26.1%
    Operating Profit Margin (%) 5.7% 6.8%  
    Interest 497 444 -10.6%
    Depreciation 367 342 -6.7%
    Profit before Tax (92) 199  
    Other Adjustments (55) -  
    Tax 1 (6)  
    Profit after Tax/(Loss) (148) 205  
    Net profit margin (%) -1.5% 2.0%  
    No. of Shares (eoy) (m) 126.9 126.9  
    Diluted number of shares 126.9 126.9  
    Earnings per share - 1.6  

    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).



    Equitymaster requests your view! Post a comment on "Whirlpool turns around". Click here!


    More Views on News

    Sorry! There are no related views on news for this company/sector.

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in WHIRLPOOL OF INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Detailed Quarterly Results With Charts