Bajaj Electricals Ltd on Tuesday posted a 30 per cent increase in consolidated net profit for the quarter ended in March owing to the growth of its consumer products.
The company also declared a dividend at the rate of ₹4.00 per share and a 200 per cent face value of ₹2 on equity shares.
It clocked ₹51 crore net profit during the quarter (₹39 crore) . The company registered a dip of 16 per cent as compared to ₹61 crore for the December quarter.
The revenue from operations grew by 11.69 per cent year-on-year to Rs.1,490 crore against Rs.1334 crore during the same quarter last year.
A 0.4 per cent dip was registered in the revenue from operations with ₹1,484 crore for the December quarter.
“We managed to grow the top line in revenues overall and in the consumer product business without losing margins. We have repositioned our brand and we are starting to see the benefits of that where the brand and product uplift is happening that is helping the market share to grow and the growth is ahead of the industry,” said Anuj Poddar, MD & CEO of Bajaj Electricals Ltd.
EPC business
The company also witnessed growth in its EPC business and turned profitable during the quarter.
“We are growing top line now and with EPC with more bids, but while maintaining that we don’t lose money in that. The demerger will likely happen by the end of this quarter. Going forward it will increase,” he said.
“Good growth in consumer products in a tough market, despite demand slowdown and pricing constraints. EPC has exited the year with positive EBIT after 3 years,” said Praveen Sahay – Research Analyst, Prabhudas Lilladher Pvt Ltd
Export dip
The company has witnessed softness in export due to inflationary pressures.
“I think there are many geopolitical issues in most of the export markets and currency issues. It has not been a good year for exports. Exports will underperform for a little while as most of the traditional markets for exports all have their internal challenges,” said Anuj.
In the domestic market, the company is anticipating the demand to return with interest rates flatting.