Whirlpool Of India Net Income jumped on 71.3% in 2015 and Revenue jumped on 16.2%
20-05-2015 • About Whirlpool Of India (
$WHIRLPOOL) • By InTwits
Whirlpool Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Whirlpool Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 1.9%.
- CAPEX is quite volatile: 105 in FY2015, 126 in FY2014, 1,826 in FY2013, 1,475 in FY2012, 1,458 in FY2011
- The company has highly profitable business model: ROIC is at 29.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Whirlpool Of India ($WHIRLPOOL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27,028 | 26,579 | 27,727 | 28,346 | 32,938 | 16.2% |
| SG&A | | | | | 704 | |
| EBITDA | 2,781 | 2,354 | 2,317 | 2,234 | 3,314 | 48.3% |
| Net Income | 1,660 | 1,271 | 1,277 | 1,229 | 2,105 | 71.3% |
Balance Sheet
|
|---|
| Cash | 489 | 399 | 1,550 | 2,916 | 5,357 | 83.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 729 | 1,184 | 841 | 864 | 849 | -1.7% |
Ratios
|
|---|
| Revenue growth | -32.1% | -1.7% | 4.3% | 2.2% | 16.2% | |
| EBITDA growth | 14.4% | -15.3% | -1.6% | -3.6% | 48.3% | |
| EBITDA Margin | 10.3% | 8.9% | 8.4% | 7.9% | 10.1% | 2.2% |
| Net Income Margin | 6.1% | 4.8% | 4.6% | 4.3% | 6.4% | 2.1% |
| SG&A, % of revenue | | | | | 2.1% | 2.1% |
| CAPEX, % of revenue | 2.7% | 4.5% | 3.0% | 3.0% | 2.6% | -0.5% |
| ROIC | 43.8% | 34.9% | 27.0% | 21.1% | 29.3% | 8.2% |
| ROE | 53.0% | 29.2% | 23.1% | 18.1% | 25.4% | 7.3% |
| Net Debt/EBITDA | -0.2x | -0.2x | -0.7x | -1.3x | -1.6x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 16.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased on 2.1 pp from 4.3% to 6.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Whirlpool Of India's CAPEX/Revenue was 2.6% in FY2015. CAPEX/Revenue decreased slightly on 1.9 pp from 4.5% in FY2012 to 2.6% in FY2015. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at high and attractive ROIC (29.30%) and ROE (25.43%). ROIC increased on 8.2 pp from 21.1% to 29.3% in FY2015. ROE increased on 7.3 pp from 18.1% to 25.4% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 83.7% in FY2015.
Valuation
The company's trades at EV/EBITDA 26.4x and P/E 44.1x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 35.5x with the industry average at 4.7x.
Appendix 1: Peers in Consumer Electronics
Below you can find Whirlpool Of India benchmarking vs. other companies in Consumer Electronics industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sharp India ($SHARP) | -49.0% | -25.1% | -7.4% | 98.9% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | -60.0% | 4.5% | 16.5% | 18.3% | |
| Blue Star ($BLUESTARCO) | -22.7% | -5.5% | 3.9% | 1.3% | |
| Mirc Electronics ($MIRCELECTR) | | -13.8% | -21.4% | -0.9% | -17.7% |
| |
|---|
| Median (4 companies) | -49.0% | -9.7% | -1.7% | 9.8% | -17.7% |
|---|
| Whirlpool Of India ($WHIRLPOOL) | | -1.7% | 4.3% | 2.2% | 16.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sharp India ($SHARP) | 4.0% | 7.2% | 4.8% | 6.3% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 7.7% | 4.3% | 5.4% | 5.6% | |
| Blue Star ($BLUESTARCO) | 8.7% | -0.8% | 3.1% | 5.4% | |
| Mirc Electronics ($MIRCELECTR) | 4.0% | 1.4% | -0.0% | 0.5% | 4.1% |
| |
|---|
| Median (4 companies) | 5.9% | 2.9% | 4.0% | 5.5% | 4.1% |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 10.3% | 8.9% | 8.4% | 7.9% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 5.1% | 2.1% | 12.0% | 3.8% | |
| Blue Star ($BLUESTARCO) | 1.8% | 1.9% | 1.0% | 1.4% | |
| Mirc Electronics ($MIRCELECTR) | 0.8% | 0.7% | 1.3% | 0.6% | 0.0% |
| |
|---|
| Median (3 companies) | 3.0% | 2.0% | 1.3% | 1.4% | 0.0% |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 2.7% | 4.5% | 3.0% | 3.0% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Blue Star ($BLUESTARCO) | | -6.1% | 6.9% | 12.6% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 16.5% | 6.5% | 9.6% | 8.4% | |
| Mirc Electronics ($MIRCELECTR) | 9.3% | -0.0% | -4.0% | -2.2% | 7.3% |
| Calcom Vision ($CALCOM) | | | -14.3% | | |
| Vxl Instruments ($VXLINSTR) | 10.2% | 13.7% | 4.5% | | |
| |
|---|
| Median (6 companies) | 9.8% | 6.5% | 0.2% | 8.4% | 7.3% |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 43.8% | 34.9% | 27.0% | 21.1% | 29.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mirc Electronics ($MIRCELECTR) | 4.6x | 5.8x | | 45.1x | 4.9x |
| Blue Star ($BLUESTARCO) | 1.6x | | 4.5x | 2.7x | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 1.5x | 2.0x | 1.4x | 2.0x | |
| Sharp India ($SHARP) | 0.8x | 1.2x | 0.4x | 0.0x | |
| |
|---|
| Median (4 companies) | 1.6x | 2.0x | 3.9x | 2.4x | 4.9x |
|---|
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.2x | -0.7x | -1.3x | -1.6x |
