Bajaj Electricals Ltd Share Price – NSE  /  BSE

Consumer Durables, Small Cap

Bajaj Electricals announced that Ravindra Singh Negi, Chief Operating Officer – Consumer Products Business, a Senior Management Personnel of the Company has tendered his resignation from the services of the Company with effect from 29 May 2024.

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Bajaj Electricals announced that under the scheme of arrangement between Bajaj Electricals (demerged company) and Bajel Projects (resulting company), the company has licensed the mark 'Bajaj' in favour of Bajel Projects for a period of three years commencing from effective date (i.e. 01 September 2023).

As a royalty, resulting company shall pay to the demerged company a sum equivalent to one percent (1%) of the net sales generated from third-party goods bearing the Licensed Trademark, excluding sales derived from the contract for the supply of goods to the demerged company itself.

Both companies are part of the same group of companies; however, neither company holds shares in the other. Further, the above transaction(s) are on an arm's length basis.

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Revenue from operations was at Rs 1,228.24 crore in third ended quarter of 31 December 2023, down 6.20% YoY.

Profit before tax from continuing operations slipped 40.24% to Rs 50.48 crore in Q3 FY24 as against with Rs 84.47 crore posted in the corresponding quarter previous year.

During the quarter, consumer products (CP) segment of the company has earned total revenue of Rs 957 crore in Q3 FY24, registering the de-growth of 7.89% as compared with Rs 1,039 crore posted in Q3 FY23. CP recorded an EBIT of Rs 16 crore in Q3 FY24 as against Rs 78 crore in the corresponding quarter of the previous year, due to one time impact on reassessment of warranty provisions.

Lighting solutions (LS) segment of the company has earned total revenue of Rs 272 crore in Q3 FY24, up 0.74% as against Rs 270 crore posted in Q3 FY23. LS recorded an EBIT of Rs 23 crore in Q3 FY24, up 35.29% as against Rs 17 crore posted in the corresponding quarter of the previous year.

As on 1 January 2024, order book for professional lighting projects stood at Rs 176 crore.

On 9M basis, the company’s consolidated net profit dropped 38.06% to Rs 101.77 crore on 4% fall in revenue from operations to Rs 3,453.19 crore in 9M FY24 over 9M FY23.

For the nine months ended 31 December 2023, the company generated positive cash flow from operations of Rs 207 crore. Cash equivalents and surplus investments were at Rs 198 crore.

Shekhar Bajaj, chairman of Bajaj Electricals, said, “Lighting solutions has achieved a strong performance in a tough environment. EBIT has expanded by 30.6% YoY and margins are stable at 8.4%. Consumer Products continues to show signs of rural stress and weak consumer demand. Revenues have contracted 8% YoY. The EBIT margins include a one-time impact on reassessment of warranty provisions for Rs 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.”

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

Shares of Bajaj Electricals were trading higher 1.19% to Rs 1,064.30 on the BSE.

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Net profit of Bajaj Electricals declined 38.87% to Rs 37.36 crore in the quarter ended December 2023 as against Rs 61.12 crore during the previous quarter ended December 2022. Sales declined 5.82% to Rs 1225.99 crore in the quarter ended December 2023 as against Rs 1301.81 crore during the previous quarter ended December 2022.

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