Bajaj Electricals reported a consolidated net loss of Rs 1.14 crore in Q4 March 2020 as against net profit of Rs 24.73 crore in Q4 March 2019.
Total revenue from operations in the fourth quarter fell 26.7% year-on-year (YoY) to Rs 1,300.66 crore. Pre-tax loss stood at Rs 2.07 crore in Q4 FY20 as against pre-tax profit of Rs 31.70 crore in Q4 FY19. The company wrote back taxes to the tune of Rs 1.26 crore in Q4 March 2020. It had incurred a total tax expense of Rs 8.62 crore in Q4 March 2019.
For the quarter, consumer products segment of the company has earned total revenue of Rs 747 crore as against Rs 743 crore, a growth of 0.5% over the corresponding previous quarter. EPC (engineering, procurement and construction) segment has achieved a total revenue of Rs 554 crore as against Rs 1032 crore, registering a de-growth of 46.3% over the corresponding quarter of the previous year. CP operating EBIT registered a growth of 37.4% over the corresponding previous quarter. Margins are at 6.8%.
Shekhar Bajaj, chairman and managing director of Bajaj, said "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. Despite the impact of COVID-19, our Consumer Products segment has maintained its revenues and delivered an EBIT growth of 37.4% in the current quarter, while the EPC segment revenue has registered a planned de-growth due to selective bidding for fresh contracts."
He added that in the near term the decision to bid selectively would continue to impact profitability, but the company remains confident about a healthy bounce back as its strategic shift plays out.
The company's order book as on 1 April 2020 stands at Rs 1,730 crore, comprising of Rs 705 crore for transmission line towers, Rs 828 crore for power distribution and Rs 197 crore for illumination projects.
In the quarter ended March 2020, the company had raised Rs 350 crore through rights issue, the proceeds of which were used primarily for repayment of debts. This has helped turnaround the balance sheet with reduced debt and improved debt to equity ratio from 1.5 (as on 31st March, 2019) to 0.7 (as on 31 March 2020).
The company said its operations were impacted in March, April 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, the company 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, the company has adequate financial cushion to take care of requirement of funds.
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).
The stock was up 0.46% at Rs 407.55. On the BSE, 22,781 shares were traded in the counter so far compared with average daily volumes of 9,988 shares in the past two weeks.
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