Electrical goods maker Bajaj Electricals has reported a 65.8 per cent drop in its consolidated net profit at ₹13.70 crore for the quarter ended June 30, 2019, compared to ₹40.14 crore in the corresponding quarter of the previous year.
Higher finance cost and inclusion of numbers of Nirlep Appliances, which the company acquired in August 2018, weighed on the company’s profits. The finance costs were up by 182 per cent YoY to ₹49.86 crore in the June quarter.
Bajaj Electricals Consumer Products (CP) revenue was up by 31.7 per cent at ₹786.27 crore as against ₹596.86 crore.
The EPC segment, however, has achieved a total revenue of ₹514.32 crore, registering de-growth of 5.3 per cent over the corresponding quarter of the previous year.
Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals Ltd, said “Consumer Products segment has registered a splendid performance driven by Range and Reach Programme (RREP) being fully stabilised PAN India and products being sold through more than 2 lakh retail outlets across the country.”
Risk-calibrated approach
“Increasing penetration has enabled the segment to register a growth of 31.7 per cent over the corresponding previous quarter. The segment is expected to continue registering a strong performance, going forward,” he added.
On the EPC side, the company aims to do business with selective and risk calibrated approach. EPC segment registered a de-growth of 5.3 per cent during the quarter, which has impacted the margins of the segment. The current order book stands at ₹1556 crore, comprising ₹496 crore for Transmission Line Towers; ₹916 crore for Power Distribution; and ₹144 crore for Illumination Projects.