Consumer durables firm Whirlpool of India reported 55.47 percent increase in standalone net profit at Rs 55.27 crore for the fourth quarter ended March 31 on account of volume growth and improved margins.
The company had posted a net profit of Rs 35.55 crore during the same period in the previous fiscal. Net sales went up by 17.51 percent to Rs 748.18 crore during the quarter under review, compared with Rs 636.68 crore in the fourth quarter of the last fiscal, the company said in a filing to the BSE.
"Volume growth, better product mix and moderation in material costs were factors that contributed to the results. Margins were improved as the cost of raw materials has come down," Whirlpool of India Vice President Shantanu Das Gupta told Agency-.
He further added the company has plans for Capex of between Rs 100 to 120 crore as Whirlpool is expecting the demand to up in the next 2-3 years. "It would be funded internally. We are a debt free cash rich company," Das Gupta added.
Over the coming quarter, he said: "The unseasonal rain is not a positive factor for us. Smaller markets where we sell our entry level mass product may be affected. However, it may pick up also due to extended summer last year." Arvind Uppal, Whirlpool of India CMD and Whirlpool Corporation president, South Asia and Asia Pacific, said: "We delivered strong results in the fourth quarter driven by both top line growth and moderation in input costs.
"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."
During 2014-15, the company's net profit stood at Rs 210.51 crore against Rs 122.91 crore in the year-ago period. Whirlpool's net sales during 2014-15 were at Rs 3,167.42 crore as against Rs 2,726.2 crore a year ago.
On the outlook of FY 2015-16, Das Gupta said: "We are disallowed by company policy to make forward looking projections on profitability. However, we do expect demand to grow in this fiscal, albeit modestly." Shares of the company closed at Rs 734.40 apiece on theBSE, up 2.26 percent from previous close.
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