Bajaj Electricals Q3 PAT down 51% YoY

8 Feb 2022 , 01:33 PM

On the segmental front, Consumer Products revenue was Rs 1,080 crore (down 6.3% YoY) and EPC revenue was Rs 240 crore (down 31% YoY) in the third quarter.

The company said that the Consumer Products segment witnessed volume de-growth mainly due to high base effect (heavy pent-up demand in Q3 FY21) and greater exposure to rural segment (in overall mix) which has witnessed substantial slowdown.

EBIT was down 38.5% to Rs 92 crore in Q3 FY22 from Rs 150 crore in Q3 FY21. EBIT margin was 7% in Q3 FY22 as against 10% in Q3 FY21.

Profit before tax in Q3 FY22 stood at Rs 76 crore, down by 43.2% from Rs 134 crore in Q3 FY21.

Shekhar Bajaj, chairman and managing director of Bajaj Electricals Limited, said ?This quarter has continued to witness the impact of increased commodity costs coupled with subdued demand scenario, leading to a deferral of price hikes for our Consumer Products business. While there is a dip in YoY performance over the previous Q3 (which had benefited from pent-up demand), the business has delivered healthy 2-year CAGR on revenues as well as EBIT. Our EPC segment has delivered an EBIT loss despite lower turnover, but continues to focus on project execution and remains cashflow positive. We have continued to generate strong overall positive cashflow from operations amounting to Rs 139 crore in this quarter.?

The order book as on 1 January 2022 stood at Rs 607 crore, comprising of Rs 376 crore for transmission line towers, Rs 53 crore for power distribution, and Rs 178 crore for illumination projects.

The board of Bajaj Electricals has approved the demerger of the power transmission and power distribution businesses of the company.

There will be no change in the shareholding pattern of the demerged company,? Bajaj Electricals said.

1 equity share of the face value of Rs 2 each fully paid-up of the resulting company shall be issued and allotted for every 1 equity share of face value Rs 2 each fully paid up held by equity shareholders of the demerged company,? it added.

Bajaj Electricals, a part of Bajaj Group, makes consumer products (appliances, fans, lighting) and executes EPC contracts (illumination, transmission line towers and power distribution).

The scrip added 0.29% to currently trade at Rs 1225.75 on the BSE.

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