Huge stocks, better realisation push up Whirlpool's yearly profit 71%

Whirlpool of India Ltd, the Indian subsidiary of the global appliances major, has posted Rs 55.3 crore net profit due to better realisation from its inventories in the quarter ended 31st March, 2015. During the period, the company’s net earnings surged 55% from Rs 36 crore same period last year. In the quarter, Whirlpool’s net sales grew 18% to Rs 748 crore from Rs 637 crore on a year on year basis.

Commenting on the result, Arvind Uppal, Chairman, Whirlpool of India Limited and President Asia Pacific, Whirlpool Corporation said, "We delivered strong results in the fouth quarter driven by both top line growth and moderation in input costs.

During 2014-15, Whirlpool’s net profit surged 71% to Rs 211 crore from Rs 123 crore in the previous financial year. On a yearly basis, the company’s revenue from operations grew 16% to Rs 3,167 crore from Rs 2,726 crore. In 2014-15, while Whirlpool’s raw material costs shoot up by 20%, higher realisation from its inventory stocks from the previous year helped the company keep its total expenses at a 13% higher level.

Since the beginning the current financial year lower temperature across the country has subdued the sales of home appliances. However", Uppal seems optimistic. “The impact of unseasonal weather conditions is likely to moderate demand in semi-urban and rural areas, but we remain optimistic that growth will accelerate in the second half of the year, he said.

At the end of yesterday, the home appliances major’s stocks surged 2.26% to Rs 734.4 in BSE. Bombay Stock exchange’s benchmark 30-share index grew 0.69% to 27,837.21 points at the closing of the day.