New Delhi , May 22 : Electrical goods maker Bajaj Electricals posted a 290 percent year-on-year (YoY) jump in its March-quarter net profit at Rs 28.54 crore. This was on account of an exceptional item that was present last year.
In FY18, pursuant to continuous reduction in the CFL business and future outlook, Bajaj Electronics re-assessed the recoverability of its investments and loans provided to Starlite Lighting Limited (Joint Venture). This was consequently impaired it fully in standalone financial results and disclosed as an exceptional item (Rs 89.36 crore) for the year ended on March 31, 2018.
The gross sales in Q4 rose 10.2 percent YoY to Rs 1,759.38 crore in Q4. Among different business segments, consumer products’ revenue grew by 14.9 percent YoY to Rs 741.03 crore. EPC business’ revenue grew by 7.3 percent to Rs 1,031.84 crore in Q4.
In FY19, Bajaj Electricals acquired 79.85 percent equity shares in Nirlep Appliances for a cash consideration of Rs 30.70 crore. The company said that it had accounted for the acquisition as a business combination.
It also accounted for the fair value of assets and liabilities acquired on a provisional basis resulting in a goodwill of Rs 24.94 crore. The results of this business are included under the consumer product segment.
Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals said, “Consumer Products Segment continued to reap the benefits of Range & Reach Expansion Programme (RREP), registering a good growth with improvement in margins. RREP has now been fully rolled out pan-India, which helps the Company to reach out to end consumers through more than 2,05,000 retail outlets across the country. This has given the Company an edge over the competition in terms of product availability and reach, which is driving segment growth.”
The company’s operating profit grew by 22.3 percent YoY to Rs 45.95 crore with improvement in operating margins from 5.8 percent to 6.2 percent.
The board has recommended a dividend of Rs 3.50 per share for the financial year 2018-19.
