Bajaj Electricals net profit at Rs28.5cr; stock drops 2%

The company’s total income Profit for the quarter ended March 2019 higher by 10%, at Rs1,772.9cr as against Rs1,606.2cr in the corresponding quarter last year.

May 22, 2019 09:05 IST India Infoline News Service

Bajaj Electricals
Bajaj Electricals Ltd’s registered profit for FY19 stood at Rs28.5cr, up by 290% yoy as against a profit of Rs7.3cr in the previous fiscal.

The company’s total income Profit for the quarter ended March 2019 higher by 10%, at Rs1,772.9cr as against Rs1,606.2cr in the corresponding quarter last year.

During the quarter, Consumer Products segment achieved total Revenue of Rs741.03cr as against Rs644.64cr, a growth of 15%; EPC segment achieved total revenue of Rs1,031.84cr as against Rs961.48cr, a growth of 7.3%, over the corresponding quarter of the previous year.

For the year ended March 31, 2019, Consumer Products segment achieved total revenue of Rs2,740.76cr as against Rs2,228.46cr, a growth of 23%, whereas EPC segment registered a growth of 58.1% with the total revenue of Rs3,931.88cr as against total revenue of Rs2,487.56cr for the corresponding period of the previous year.

During the year, the company acquired 79.85% equity shares in Nirlep Appliances Private Limited, for a cash consideration of Rs30.70cr. The company has accounted for the acquisition as a business combination under Ind AS 103 and accounted for the fair value of assets and liabilities acquired on a provisional basis resulting in goodwill of Rs24.94cr. The results of this business are included under the consumer product segment.

Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals Limited, said “Consumer Products Segment continued to reap the benefits of Range & Reach Expansion Programme (RREP), registering a good growth with improvement in margins. RREP has now been fully rolled out pan India, which helps the Company to reach out to end consumers through more than 2,05,000 retail outlets across the country. This has given the Company an edge over the competition in terms of product availability and reach, which is driving segment growth. Operating profit has grown by 22.3% from Rs37.63cr to Rs45.95cr with improvement in operating margins from 5.8% to 6.2%. The segment is expected to continue its good performance in the future years as well.”

Bajaj Electricals Ltd is currently trading at Rs550, down by Rs11.6 or 2.07%, from its previous closing of Rs561.60 on the BSE. The scrip opened at Rs565 and has touched a high and low of Rs573 and Rs548.65, respectively.

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