Whirlpool of India - Q3FY13 Result Update - SPA Securities

Whirlpool of India (WPL) registered sales and PAT of INR 6,187mn (flattish YoY) and INR 101mn (down 52% YoY) respectively in Q3FY13. EBIDTA margin disappointed by registering a decline of 275bps YoY to 3.63%. The fall in margin was led by uptick in key RM like steel, copper & aluminum and higher growth in total employee cost (up 19% YoY) against revenue growth in Q3FY13.

We expect sales growth to continue to remain subdued in the next quarter but expect improvement in FY14 on the back of revival in economic growth and softening of interest rates. Also, favourable product mix and expected appreciation of INR (against USD) would provide comfort on the margin front.

We maintain our HOLD recommendation with a target price of INR 245.

Source : Equity Bulls

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