WHIRLPOOL OF INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

WHIRLPOOL OF INDIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

WHIRLPOOL OF INDIA Income Statement Analysis

• Operating income during the year rose 32.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY18 as against 13.9% in FY17.
• Depreciation charges increased by 16.1% and finance costs decreased by 25.5% YoY, respectively.
• Other income grew by 18.8% YoY.
• Net profit for the year grew by 12.9% YoY.
• Net profit margins during the year declined from 8.8% in FY17 to 7.5% in FY18.

WHIRLPOOL OF INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	35,212	46,780	32.9%
Other income	Rs m	730	867	18.8%
Total Revenues	Rs m	35,942	47,647	32.6%
Gross profit	Rs m	4,888	5,600	14.6%
Depreciation	Rs m	875	1,015	16.1%
Interest	Rs m	59	44	-25.5%
Profit before tax	Rs m	4,685	5,408	15.4%
Tax	Rs m	1,580	1,902	20.4%
Profit after tax	Rs m	3,105	3,507	12.9%
Gross profit margin	%	13.9	12.0
Effective tax rate	%	33.7	35.2
Net profit margin	%	8.8	7.5

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

WHIRLPOOL OF INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 13 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 0.9%.
• Current assets fell 4% and stood at Rs 21 billion, while fixed assets rose 67% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 32 billion as against Rs 29 billion during FY17, thereby witnessing a growth of 12%.

WHIRLPOOL OF INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	14,536	17,569	20.9
Current Liabilities	Rs m	12,539	12,658	0.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,602	31,979	11.8
Current assets	Rs m	22,332	21,484	-3.8
Fixed Assets	Rs m	6,270	10,496	67.4
Total Assets	Rs m	28,602	31,979	11.8

WHIRLPOOL OF INDIA Cash Flow Statement Analysis

• WHIRLPOOL OF INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 0.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion, an improvement of 130.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -465 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -774 million from the Rs 2 billion net cash flows seen during FY17.

WHIRLPOOL OF INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	3,836	3,842	0.2%
Cash Flow from Investing Activities	Rs m	-1,801	-4,151	-
Cash Flow from Financing Activities	Rs m	-13	-465	-
Net Cash Flow	Rs m	2,022	-774	-

Current Valuations for WHIRLPOOL OF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.6, an improvement from the EPS of Rs 24.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,513.6, stands at 54.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 38.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	277.5	368.7
TTM Earnings per share	Rs	24.5	27.6
Diluted earnings per share	Rs	24.5	27.6
Price to Cash Flow	x	39.0	38.9
TTM P/E ratio	x	65.0	54.8
Price / Book Value ratio	x	8.6	10.0
Market Cap	Rs m	124,940	175,933
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for WHIRLPOOL OF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY18, from 1.8x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 124.2x during FY18, from 80.5x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 20.0% during FY18, from 21.4% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 31.0% during FY18, from 32.6% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.1% during FY18, from 11.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.8	1.7
Debtors’ Days	Days	212	188
Interest coverage	x	80.5	124.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.1	11.1
Return on equity	%	21.4	20.0
Return on capital employed	%	32.6	31.0

To see how WHIRLPOOL OF INDIA has performed over the last 5 years, please visit here.

WHIRLPOOL OF INDIA Share Price Performance

Over the last one year, WHIRLPOOL OF INDIA share price has moved up from Rs 1,223.9 to Rs 1,513.6, registering a gain of Rs 289.7 or around 23.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,261.9 (up 0.2%). Over the last one year it has moved up from 15,257.3 to 22,261.9, a gain of 7,005 points (up 45.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for WHIRLPOOL OF INDIA and quarterly results for WHIRLPOOL OF INDIA)

Read: Latest Annual Report Analysis of WHIRLPOOL OF INDIA