Bajaj Electricals Reports 44.1% Drop in Q2 Profit and 4% Revenue Decline

Bajaj Electricals Limited posted its fiscal second-quarter results, revealing a 44.1% decrease in profit compared to the same period last year. The company's profit for the quarter stood at Rs 31.68 crore, down from Rs 56.65 crore in the previous year. Additionally, revenue from operations saw a 4% decline, reaching Rs 1,112.82 crore in comparison to Rs 1,158.60 crore during the second quarter of FY23. The company's EBITDA also recorded a substantial decrease of 44%, settling at Rs 57 crore.

During the review quarter, Bajaj Electricals' consumer products segment reported a total revenue of Rs 858 crore, down 2.9% from Rs 883 crore in the previous year. The segment's EBIT was Rs 41 crore, a decline from Rs 62 crore in the corresponding quarter of the previous year. In the same period, the lighting solutions segment generated a total revenue of Rs 255 crore, down by 7.4% from Rs 276 crore in the previous year. It reported an EBIT of Rs 14 crore, compared to Rs 26 crore in the corresponding quarter of the previous year. Notably, the EPC business was demerged from September 1, 2023.

For the six months ending on September 30, 2023, the company achieved positive cash flow from operations, amounting to Rs 92 crore. Bajaj Electricals also maintains cash equivalents and surplus investments of Rs 204 crore.

Shekhar Bajaj, Chairman of Bajaj Electricals Limited, commented on the results, stating, "The company has achieved a stable performance amidst a weak consumer demand sentiment. Consumer Products and Lighting Solutions revenues have contracted by 2.9% and 7.4%, respectively, for the quarter, due to demand slowdown and pricing constraints. Meanwhile, we continue to monitor the demand and continue to focus on our long-term strategic objectives with a continued push on new products and brand strengthening."

It is noteworthy that the order book for professional lighting projects, as of July 1, 2023, stood at Rs 144 crore.