WHIRLPOOL OF INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

WHIRLPOOL OF INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

WHIRLPOOL OF INDIA Income Statement Analysis

• Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY21 as against 11.2% in FY20.
• Depreciation charges increased by 9.9% and finance costs decreased by 22.7% YoY, respectively.
• Other income declined by 30.4% YoY.
• Net profit for the year declined by 30.0% YoY.
• Net profit margins during the year declined from 7.9% in FY20 to 5.6% in FY21.

WHIRLPOOL OF INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	59,925	58,999	-1.5%
Other income	Rs m	1,287	896	-30.4%
Total Revenues	Rs m	61,212	59,895	-2.2%
Gross profit	Rs m	6,734	5,190	-22.9%
Depreciation	Rs m	1,293	1,421	9.9%
Interest	Rs m	199	153	-22.7%
Profit before tax	Rs m	6,529	4,511	-30.9%
Tax	Rs m	1,766	1,179	-33.3%
Profit after tax	Rs m	4,763	3,333	-30.0%
Gross profit margin	%	11.2	8.8
Effective tax rate	%	27.0	26.1
Net profit margin	%	7.9	5.6

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

WHIRLPOOL OF INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 19 billion as compared to Rs 16 billion in FY20, thereby witnessing an increase of 17.7%.
• Current assets rose 19% and stood at Rs 39 billion, while fixed assets rose 2% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 50 billion as against Rs 44 billion during FY20, thereby witnessing a growth of 15%.

WHIRLPOOL OF INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	25,128	28,028	11.5
Current Liabilities	Rs m	16,078	18,925	17.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	43,629	50,068	14.8
Current assets	Rs m	33,218	39,462	18.8
Fixed Assets	Rs m	10,411	10,606	1.9
Total Assets	Rs m	43,629	50,068	14.8

WHIRLPOOL OF INDIA Cash Flow Statement Analysis

• WHIRLPOOL OF INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 37.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -754 million, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 8 billion from the Rs 2 billion net cash flows seen during FY20.

WHIRLPOOL OF INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	3,802	5,241	37.9%
Cash Flow from Investing Activities	Rs m	-720	3,376	-
Cash Flow from Financing Activities	Rs m	-872	-754	-
Net Cash Flow	Rs m	2,211	7,863	255.7%

Current Valuations for WHIRLPOOL OF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.3, an decline from the EPS of Rs 37.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,229.9, stands at 84.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.1 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 60.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	472.3	465.0
TTM Earnings per share	Rs	37.5	26.3
Diluted earnings per share	Rs	37.5	26.3
Price to Cash Flow	x	37.9	60.0
TTM P/E ratio	x	48.1	84.9
Price / Book Value ratio	x	9.8	10.2
Market Cap	Rs m	247,105	285,094
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for WHIRLPOOL OF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 2.1x during FY20. 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 deteriorated and stood at 30.4x during FY21, from 33.9x during FY20. 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 11.9% during FY21, from 19.0% during FY21. 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 16.6% during FY21, from 26.8% during FY20. 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 declined and down at 7.0% during FY21, from 11.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.1	2.1
Debtors’ Days	Days	196	234
Interest coverage	x	33.9	30.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.4	7.0
Return on equity	%	19.0	11.9
Return on capital employed	%	26.8	16.6

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 1,807.6 to Rs 2,229.9, registering a gain of Rs 422.3 or around 23.4%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

Overall, the S&P BSE SENSEX is up 74.1% 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