Bajaj Electricals announced its Q3 numbers during market hours today, 4 February 2020.
On a consolidated basis, Bajaj Electricals' net profit tanked 84.51% to Rs 9.37 crore in Q3 December 2019 as against Rs 60.52 crore reported in Q3 December 2018. Total revenue from operations slumped 40.69% to Rs 1283.86 crore in Q3 December 2019 over Q3 December 2018.
The company reported net loss of Rs 32.42 crore in Q2 September 2019.
Profit before tax dropped 84.21% to Rs 15.27 crore in Q3 December 2019 compared with pre-tax profit of Rs 96.73 crore in Q3 December 2018. Total tax expenses, for the quarter, witnessed a 83.70% fall to Rs 5.90 crore over Rs 36.21 crore paid in Q3 December 2018.
During the quarter, EPC (Engineering, Construction and Procurement) segment has achieved a total revenue of Rs 423.45 crore as against Rs 1401.18 crore in Q3 December 2018, recording a 69.8% drop over the corresponding quarter of the previous year. CP Operating Earnings before interest and tax (EBIT) registered a growth of 27.5% over the corresponding previous quarter while margins have grown to 7.7%.
As on 1 January 2020, the order book stood at Rs 1,742 crore, comprising of Rs 726 crore for transmission line towers, Rs 860 crore for power distribution and Rs 156 crore for illumination projects.
As of 31 December 2019, the firm generated positive cashflow from operations of Rs 499.41 crore as comapared to a cash outflow from operations of Rs 486.10 crore in 31 December 2018.
Commenting on the Q3 figures, Shekhar Bajaj, the chairman and managing director of Bajaj Electricals, has said that, "We have been pursuing our stated path of a strong focus on positive cashflow from operations, reducing our debt and strengthening our balance sheet. I'm glad to note that we have done well on all of these parameters and remain committed to it. We continue to drive growth in our Consumer Products segment while adopting a more risk-calibrated approach for the EPC segment with a focus on completion of existing projects on hand. Our Consumer Products segment has registered a growth of 12.7% in top line, while the EPC segment has registered a planned de-growth due to selective bidding for fresh contracts. In the near term this will continue to impact profitability, but we remain confident about a healthy bounce back as our strategic shift plays out."
Bajaj Electricals is engaged in engineering and projects, power distribution, illumination and consumer durables businesses. The company's business segments consist of lighting, consumer durables, engineering & projects and others. The lighting segment includes lamps, tubes and luminaries.
Shares of Bajaj Electricals rallied 9.66% to Rs 412.05. The scrip hovered in the range of Rs 420.75 to Rs 365.65 so far.
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