CRISIL assigns A1+ rating to ST debt of Bajaj Electricals

14 Jan 2022 , 11:00 AM

CRISIL said that the rating reflects the companys healthy business risk profile driven by its leading market position in the consumer electronics and durables segment in India, diversified range of products, improving financial risk profile and healthy liquidity.

BEL also benefits from being part of the Bajaj group, which has provided financial support to the company in the past.

These strengths are partially offset by modest operating efficiency driven by subdued return metrics of the engineering, procurement and construction (EPC) segment and susceptibility of performance to volatility in commodity prices and increasing competition.

BEL is an established player in the consumer electronics and durables industry. BEL also has presence in the premium range of appliances with the brand, Morphy Richards. diversified into engineering projects, to parlay its presence in the lighting segment, for capitalising on the growing infrastructure spending in India.

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 companys consolidated net profit jumped 17.8% to Rs 62.55 crore on a 6.1% rise in net sales to Rs 1,283.44 crore in Q2 FY22 over Q2 FY21.

The scrip shed 0.25% to currently trade at Rs 1228.40 on the BSE.

Powered by Capital Market – Live News