Bajaj Electricals Ltd's Q3FY19 standalone net profit rises 73.6% yoy to Rs63.9cr : Beats Estimates

The company’s standalone revenue stood at Rs2,161.8cr, up 88.8% yoy and 35.2% qoq.

Feb 07, 2019 02:02 IST India Infoline Research Team

Bajaj Electricals Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,161.8 88.8
EBITDA 137.8 96.0
EBITDA Margin (%) 6.4 23
Net Profit (adjusted) 63.9 73.6
***EBITDA margin change is bps
Bajaj Electricals reported strong numbers for the quarter, beating estimate on all fronts. Revenue surged 88.8% yoy to Rs2,161.8cr, beating the estimates by ~29%. EBITDA too jumped 96% yoy to Rs137.8cr for the same period, beating the estimates significantly by 61%. However, EBITDA margin expanded only 23bps yoy to 6.4% (estimate 5.1%). Net profit for the quarter jumped by 73.6% yoy to Rs63.9crcr, beating the estimate by ~78%.
  • Stellar performance in the top-line was driven ~157% yoy growth in Engineering & Project (E&P) division (contributing 65% to total revenue).
  • Strong performance of E&P division (revenue growth of 157% yoy to Rs1,401.2cr) was led by fast execution of EPC orders from Uttar Pradesh.
  • Consumer durable (CD), which includes appliances and lighting business reported revenue growth of ~27% yoy (to Rs760.6cr) led by ~40% yoy growth in appliances category; lighting segment sales were muted due to continued pricing pressure in the LED segment.
  • Within the appliances category, Morphy Richards recorded ~33% yoy growth.
  • On the EBIT front, E&P reported 146.4% yoy growth with EBIT margin of 5.6% (down 25bps yoy) and CD segment reported 41.2% jump in EBIT with EBIT margin of 7.3% (expansion of 74bps yoy).
  • Company took a price hike of ~2-3% in the consumer durable category in Q3FY19. Consumer products now reach out to more than 1,90,000 retail outlets, thus, showing significant growth in sales and improvement in margins.
  • The current order for E&P segment stood at Rs5,787cr (Rs1,004cr for transmission line towers, Rs4,657cr for power distribution, and Rs126cr for illumination projects).
  • Company has executed orders worth Rs1,148cr in 9MFY19 out of the total order book of Rs5,000cr from UP. It is expected to execute more Rs1,500cr by the end of March 2019. The remaining Rs1,500cr worth of order will be executed in FY20E, subject to change in government post- elections (due in May 2019).

Technical View:

Bajaj Electricals Ltd is currently trading at Rs. 430.85, down by 10.55 points or 2.39% from its previous closing of Rs. 441.40 on the BSE.
The scrip opened at Rs. 441.55 and has touched a high and low of Rs. 443.30 and Rs. 429 respectively. So far 1,46,353 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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