Bajaj Electricals Ltd on Monday posted a 39 per cent decline in its consolidated net profit for the quarter that ended in December owing to weak consumer demand.
The company clocked ₹37 crore net profit during the quarter against ₹61 crore for the same quarter last year. A 37 per cent increase in profit was reported with ₹27 crore in the September quarter.
Revenue from operations for the company dipped 6.18 per cent to ₹1,228 crore reported in December (₹1,309 crore). Revenue from operations grew 10.4 per cent sequentially.
Cash-flow positive
Bajaj Electricals has cash flow of ₹207 crore, while its cash equivalents and surplus investments are at ₹198 crore.
Consumer products revenues declined 8 per cent, due to weak consumer sentiment with ₹957 crore in the December quarter. The lighting solutions segment saw a growth of 0.6 per cent with ₹262 crore.
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“Lighting solutions has achieved a strong performance in a tough environment. EBIT has expanded 30.6 per cent year on yearand margins are stable at 8.4 per cent. Consumer Products continue to show signs of rural stress and weak consumer demand. Revenues have contracted 8 per cent year on year. The EBIT margins include a one-time impact on reassessment of warranty provisions for ₹23 crore. We continue to be cash-flow positive and focus on our long-term strategic objectives with a continued push on new products and brand strengthening,” said Shekhar Bajaj, Chairman of Bajaj Electricals Ltd.