Lighting products and household appliances maker Bajaj Electricals Ltd is revising downards its turnover target by up to 8 per cent due to demonetisation impact and change in sales strategy.
"Earlier, we were looking clearly at Rs 5,000 crore, which was our objective target. We are now looking at number around Rs 4,600 crore for the year (FY 2016-17). The fourth quarter should be a good quarter," Bajaj Electricals Chairman & Managing Director Shekhar Bajaj told PTI.
Explaining the reasons for the revision of the target, he said it was due to several factors such as demonetisation and the company's change in sales model.
"Demonetisation has short-term problem in November and December as there was shortage of cash," he said.
Besides, the company's LED business had failed to get orders from EESL, a government body which is promoting energy efficient lighting solution.
"LED has gone down, we have got no order in LED. We are giving secondary sales focus that why in the short term we are loosing sale," Bajaj said.
Last year, Bajaj had said in October that the company is expecting an equal contribution of around Rs 2,500 crore each this fiscal from its both segments - durables and engineering and projects (EPC) divisions.
Bajaj said the focus of the company is to have sustainable profitable growth.
"Bottom line is what we are going to look at is in terms of distribution and not look on top line only. Topline can wait but if your margins gets impacted, your working capital gets impacted and cost goes up. Topline is one of the factors but we are looking at bottom line," he said.
Bajaj Electricals had reported a decline of 17.47 per cent in net profit to Rs 29.71 crore for the third quarter ended December 2016. Its total income was also down 7.05 per cent to Rs 1,055.09 crore in October-December period.
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