Whirlpool Of India Net Income surged on 17.5% and EBITDA Margin increased slightly on 0.86 pp from 10.1% to 10.9%
20-05-2016 • About Whirlpool Of India (
$WHIRLPOOL) • By InTwits
Whirlpool Of India reported FY2016 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 3.0%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: ₹978m in FY2016, ₹105m in FY2015, ₹126m in FY2014, ₹1,826m in FY2013, ₹1,475m in FY2012
- The company has highly profitable business model: ROIC is 28.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 5.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.7 pp from 4.0% to 9.7% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 7.9% and was growing since that time.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin increased slightly on 0.70 pp from 6.4% to 7.1% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 4.3% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Whirlpool Of India had CAPEX/Revenue of 2.1%. CAPEX/Revenue decreased slightly on 0.90 pp from 3.0% in FY2013 to 2.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.6%. CAPEX as a % of Revenue declined at -0.51 pp per annum in the last 5 years.
Return on investment
The company operates at high and attractive ROIC (28.2%) and ROE (23.8%). ROIC decreased slightly on 1.1 pp from 29.3% to 28.2% in FY2016. ROE decreased slightly on 1.6 pp from 25.4% to 23.8% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 59.9%.
Valuation and dividends
The company's trades at EV/EBITDA 22.0x and P/E 37.3x while industy averages are 17.8x and 21.9x. Whirlpool Of India's EV/(EBITDA-CAPEX) is 27.3x with the industry average at 22.8x.
Financial and operational results
Whirlpool Of India ($WHIRLPOOL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26,579 | 27,727 | 28,346 | 32,938 | 34,881 | 5.9% |
| SG&A | | | | 704 | 608 | -13.7% |
| EBITDA | 2,354 | 2,317 | 2,234 | 3,314 | 3,810 | 15.0% |
| Net Income | 1,271 | 1,277 | 1,229 | 2,105 | 2,474 | 17.5% |
Balance Sheet
|
|---|
| Cash | 399 | 1,550 | 2,916 | 5,357 | 8,563 | 59.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1,184 | 841 | 864 | 849 | 745 | -12.3% |
Ratios
|
|---|
| Revenue growth | -1.7% | 4.3% | 2.2% | 16.2% | 5.9% | |
| EBITDA growth | -15.3% | -1.6% | -3.6% | 48.3% | 15.0% | |
|
|---|
| EBITDA Margin | 8.9% | 8.4% | 7.9% | 10.1% | 10.9% | 0.9% |
| SG&A, % of revenue | | | | 2.1% | 1.7% | -0.4% |
| Net Income Margin | 4.8% | 4.6% | 4.3% | 6.4% | 7.1% | 0.7% |
| CAPEX, % of revenue | 4.5% | 3.0% | 3.0% | 2.6% | 2.1% | -0.4% |
|
|---|
| ROIC | 34.9% | 27.0% | 21.1% | 29.3% | 28.2% | -1.1% |
| ROE | 29.2% | 23.1% | 18.1% | 25.4% | 23.8% | -1.6% |
| Net Debt/EBITDA | -0.2x | -0.7x | -1.3x | -1.6x | -2.2x | -0.6x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 4.5% | 16.5% | 18.3% | 43.0% | - |
| Sharp India ($SHARP) | -25.1% | -7.4% | 98.9% | 22.2% | - |
| Blue Star ($BLUESTARCO) | -5.5% | 3.9% | 1.3% | 8.4% | - |
| Mirc Electronics ($MIRCELECTR) | -13.8% | -21.4% | -0.9% | -17.7% | - |
| |
|---|
| Median (4 companies) | -9.7% | -1.7% | 9.8% | 15.3% | - |
|---|
| Whirlpool Of India ($WHIRLPOOL) | - | 4.3% | 2.2% | 16.2% | 5.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 4.3% | 5.4% | 5.6% | 9.0% | - |
| Sharp India ($SHARP) | 7.2% | 4.8% | 6.3% | 5.7% | - |
| Blue Star ($BLUESTARCO) | -0.8% | 3.1% | 5.4% | 5.5% | - |
| Mirc Electronics ($MIRCELECTR) | 1.4% | -0.0% | 0.5% | 4.1% | - |
| Vxl Instruments ($VXLINSTR) | - | - | - | 0.4% | - |
| |
|---|
| Median (5 companies) | 2.9% | 4.0% | 5.5% | 5.5% | - |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 8.9% | 8.4% | 7.9% | 10.1% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.1% | 12.0% | 3.8% | 4.2% | - |
| Blue Star ($BLUESTARCO) | 1.9% | 1.0% | 1.4% | 1.9% | - |
| Mirc Electronics ($MIRCELECTR) | 0.7% | 1.3% | 0.6% | 0.0% | - |
| |
|---|
| Median (3 companies) | 2.0% | 1.3% | 1.4% | 1.9% | - |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 4.5% | 3.0% | 3.0% | 2.6% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 6.5% | 9.6% | 8.4% | 25.6% | - |
| Blue Star ($BLUESTARCO) | -6.1% | 6.9% | 12.6% | 13.4% | - |
| Mirc Electronics ($MIRCELECTR) | -0.0% | -4.0% | -2.2% | 7.3% | - |
| Calcom Vision ($CALCOM) | - | -14.3% | - | - | - |
| Vxl Instruments ($VXLINSTR) | 13.7% | 4.5% | - | - | - |
| |
|---|
| Median (6 companies) | 6.5% | 0.2% | 8.4% | 13.4% | - |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 34.9% | 27.0% | 21.1% | 29.3% | 28.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mirc Electronics ($MIRCELECTR) | 5.8x | - | 45.1x | 4.9x | - |
| Blue Star ($BLUESTARCO) | - | 4.5x | 2.7x | 2.0x | - |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.0x | 1.4x | 2.0x | 1.0x | - |
| Sharp India ($SHARP) | 1.2x | 0.4x | 0.0x | 0.6x | - |
| Vxl Instruments ($VXLINSTR) | 1.2x | 3.9x | - | 0.0x | - |
| |
|---|
| Median (5 companies) | 2.0x | 3.9x | 2.4x | 1.0x | - |
|---|
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.7x | -1.3x | -1.6x | -2.2x |
