Monday, May 27, 2013: Bajaj Electricals Ltd has declared its results for the Fourth Quarter and Year ended 31stMarch, 2013. During the fourth quarter, the Net Sales/Income from operations has increased by 5.1% at Rs. 1113.71 Cr as against Rs. 1059.87 Cr in the fourth quarter of the previous year. However, the Company has, made a nominal Profit of Rs. 1.02 Cr in this quarter, as against profit of Rs. 72.62 Cr in the corresponding period of the previous year. The Net Profit for the period was Rs. 0.62 Cr as against Net Profit of Rs. 48.99 Cr in the corresponding previous period.
For the financial year ended 31st March, 2013, Net Sales/ Income from Operations is higher by 9.3% at Rs. 3387.57 Cr as against Rs. 3098.96 Cr in the previous year. However, the Profit before Tax and exceptional items has de-grown by 74.8% to Rs. 44.25 Cr from Rs. 175.95Cr. Net Profit, including exceptional income of Rs. 24.68 Cr derived from the sale of investment in the equity shares of Bajaj Ventures Limited, has de-grown by 56.6% to Rs. 51.20Cr from Rs. 117.88 crore over the corresponding period of the previous year.
During the quarter, Consumer Durable and Lighting Segments of the Company performed well with total revenues of Rs. 543.59 Cr and Rs. 284.72 Cr, with a growth of 22.4% and 14.9%, respectively, over the corresponding period of the previous year, whereas the total revenues of the Engineering & Projects Segment have been impacted and de-grown by 22.4% to register the total revenue of Rs. 285.18Cr as against Rs. 367.69 Cr in the corresponding quarter of the previous year.
During the year ended 31st March, 2013, the Consumer Durable and Lighting Segmentshave registered revenue of Rs. 1837.73 Cr and Rs. 860.42 Cr, with a growth of 22.5% and 12.5%, respectively, over the previous year, whereas the Engineering &Projects Segment registered the total income of Rs. 687.96 Cr down 17.3% over the previous year.
Mr. Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals Limited, said “Consumer Durables and Lighting segment have been performing consistently quarter on quarter and have fared well during the year ended March 2013 with a top line growth of 22.5% and 12.5%, respectively, over the corresponding period of previous year. Despite tough market conditions in terms of volatility in commodity prices, exchange rates, low customer sentiments and tough competition, demand for the Lighting and small consumer durables continued to remain strong which helped both these segments to register a good growth over the previous period. However, the margins continued to be under pressure.
On the Engineering &Projects side, he said, “The E&P BU achieved a turnover of Rs.687.96 cr, which is lower by 17.3% over the corresponding previous period. The Company continued its efforts to close theoverrunsites and in the process incurred additional expenditure. On the basis of the financial closures of some old projects, the Company had to make provision for write offof certain old outstanding amounts.This is a onetime hit and is not likely to recur in future as the management has taken appropriate measures to monitor the projects performance on a continuous basis and take timely corrective actions to ensure the completion of projects as per schedule to avoid cost and time over run.
The de-growth in sales coupled with additional provisions and write offs, added to the losses. However, with a current order book of Rs. 1071 Cr, consisting of Rs.369 Cr of Transmission Line Towers, Rs. 89 Cr of High Mast & Poles and Rs. 613 Cr of Special Projects, to begin with, this segment is expected to turnaround and show better results in the current year. Beside this, the Company is L1 in some tenders aggregating to Rs.559 Cr.”
