Bajaj Electricals' consolidated net loss of Rs 16.60 crore in Q1 June 2020 compared with net profit of Rs 13.70 crore in Q1 June 2019.
Consolidated net sales slumped 53.46% to Rs 608.29 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 32.06 crore in Q1 June 2020 as against pre-tax profit of Rs 22.75 crore incurred in Q1 June 2019. Current tax rebate for the quarter stood at Rs 17.58 crore as against a tax expense of Rs 4.98 crore in Q1 June 2019. The Q1 earnings were announced during trading hours today, 11 August 2020.
For the quarter, consumer products segment of Bajaj Electricals has earned a total revenue of Rs 395 crore as against Rs 786 crore, recording a 49.8% fall Y-o-Y (year-on-year). During June 2020, consumer products segment revenues was 104% of the revenues earned in June 2019. EPC segment achieved a total revenue of Rs 213 crore as compared to Rs 521 crore, registering a 59% drop Y-o-Y over the corresponding quarter of the previous year. Consumer Products Operating EBIT is at Rs 8 crore from Rs 51 crore, recording 83.9% fall Y-o-Y over the corresponding first quarter of the previous year. The margins stood at 2.1%.
In the first quarter of FY21, Bajaj Electricals generated positive cashflow from operations of Rs 145 crore as against Rs 42 crore in the corresponding first quarter of the previous year. Debt reduced to Rs 810 crore as at 30 June 2020 from Rs 962 crore as at 31 March 2020.
The outbreak of COVID-19 globally and in India has caused significant disturbances and slowdown of economic activity. Bajaj Electricals' operations have also been impacted in the months of March 2020, April 2020 and May 2020 due to temporary suspension of manufacturing facilities, sales and distribution and execution of EPC contracts following nationwide lockdown announced by the Government of India in view of COVID-19. However, post the permission for operations of certain activities by the Government of India in non-containment zones, the electric equipment manufacturer has resumed operations at its manufacturing units at Chakan and Ranjangaon, branches, and at all warehouses across the country. Most of the company's EPC sites are also operational now. Further, Bajaj Electricals has adequate financial cushion to take care of requirement of funds.
Shekhar Bajaj, the chairman and managing director (MD) of Bajaj Electricals, has said: "This has been a quarter amidst unprecedented times. We have focused on controlling short term impact while continuing to work towards our long-term strategic goals. Our Consumer Products business has shown signs of strong recovery in the latter half of this quarter, thus delivering a positive segment-level EBIT. Our EPC segment has been adversely affected due to hold up of project execution and billings and incurred a loss. Nonetheless, we have maintained our strong focus on cashflows from operations in this quarter too, generating a healthy Rs 145 crore, thereby further reducing our debt significantly."
The order book as on 1 July 2020 was at Rs 1,595 crore, comprising of Rs 624 crore for transmission line towers, Rs 764 crore for power distribution and Rs 207 crore for illumination projects.
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Bajaj Electricals is a part of conglomerate "Bajaj Group". Its business comprises of consumer products manufacturing (appliances, fans, lighting) and execution of EPC contracts (illumination, transmission line towers and power distribution).
Shares of Bajaj Electricals rose 0.07% to Rs 426.80 on BSE. The stock traded in the range of Rs 419 to Rs 440 so far.
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