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Whirlpool of India Limited Earnings Conference Call Summary
Call Overview • Date: August 1, 2024 • Moderator: Roopali Singh, Company Secretary • Key Executives: Narasimhan Eswar (Managing Director), Aditya Jain (CFO) • Presentation available on company and stock exchange websites • Cautionary statement noted
Strategic Focus • Emphasis on growth opportunities in India due to: • Low appliance penetration • Growing affluent demographic • Key success factors: • Strong brand reputation • Diverse product portfolio • Robust manufacturing and distribution network
Financial Performance • Historical Performance: • Revenue CAGR of 12% and PBT CAGR of 20% (2008-09 to 2019-20) • Challenges from COVID-19 and competition • Fiscal Year 2023-24: • Revenue growth of 2% • Stable profits with contrasting performance in halves • Q1 (April to June): 24% revenue growth, 128% increase in PBT
Market Segment Performance • Strong growth in: • Refrigerators and air conditioning (double-digit increases) • Washer segment lagged behind • Revenue reached 2,384 crores (24% YoY increase) • Focus on: • Effective marketing • Supply chain execution • New product introductions
Strategic Imperatives • Five key strategies for growth: • Inspiring consumers • Achieving product leadership • Building a resilient supply chain • Excelling in execution • Expanding consumer direct business • Collaboration with Unilever for laundry experience enhancement
Product Innovations • New product launches: • Premium semi-automatic washing machines • Auto-sensing chimneys • Heat shielded hobs • Focus on strong execution in sales and service
Financial Overview by CFO • Fiscal Year 2023-24: • Revenue: 6,333 crores (2% increase) • EBITDA: 312 crores (4.6% YoY growth) • Profit before tax: 250 crores (halted three-year decline) • Consolidated revenue (including Elica): 6,830 crores (2.4% increase)
Market Share Strategy • Focus on profitable market share growth • E-commerce strategy: • Presence on key platforms • Balanced performance across channels • Emphasis on product innovation and effective distribution
Competitive Landscape • Acknowledgment of increased competition, including Beko • Focus on identifying profitable market growth opportunities • Continuous improvement and execution emphasized
Challenges and Future Outlook • Post-COVID market dynamics: • Initial growth followed by subdued overall market growth • Shift towards premium products • Long-term guidance of high single-digit profit margins • Commitment to steady progress amidst competitive pressures
Conclusion • Emphasis on maintaining current discount levels • Acknowledgment of margin challenges but optimism for long-term growth in durable goods industry in India.
Conference Call Overview • Date: February 2, 2024 • Led by: Roopali Singh (Company Secretary) • Presenters: Narasimhan Eswar (Managing Director), Aditya Jain (CFO) • Transcript available on the company's website
Strategic Focus • Emphasis on growth potential in the Indian market: • Projected GDP growth of 6-7% • Low current ownership rates for appliances • Strong brand presence and diverse product portfolio • Historical performance: • Revenue CAGR of 12% and PBT CAGR of 20% (2008-2020) • Challenges faced in 2021-2022 due to COVID-19 and competition
Recent Financial Performance • Fiscal Year 2023-2024: • First half: 4.3% revenue decline, 28.8% drop in PBT • October-December quarter: 19.2% revenue increase, 34.6% profit growth • Key growth drivers: • Product upgrades and execution strategies • Seasonal volume increases (Diwali) • Cost productivity program (P4G)
Product Innovations and Market Position • Increased ownership in Elica India to 87% • Focus on premiumization across all product categories • New product launches: • Fully automatic washers with ozone refresh technology • Frost-free refrigerators with rapid convertibility • iSmart inverter kitchen hood and heavy-duty hobs from Elica
Operational Improvements • Enhanced visibility of premium products • Refined pricing strategies and sales execution • Significant improvement in net promoter score (NPS)
Financial Highlights • Q3 earnings: • 19.2% revenue growth • EBITDA rose to 39 crore (up 105% YoY) • PBT increased to 22 crore (up 35% YoY) • Generated 470 crores in cash from operating activities
Market Share and Growth Strategies • Focus on consumer insights, product leadership, and resilient supply chains • Aiming for high single-digit revenue CAGR and PBT margin long-term • Addressing competitive landscape and margin challenges
Future Outlook • Commitment to quality and innovation • Plans for potential outsourcing in non-core categories • Cautious optimism about export growth contingent on regulatory changes
Conclusion • Emphasis on maintaining product quality and effective marketing • Focus on optimizing distribution and exploring niche opportunities • Management expressed gratitude to participants at the end of the call.