Bajaj Electricals Q4 Net Sales grows by 24.9%

Company Brief

New Delhi, May 23, 2011

Bajaj Electricals further consolidated its position during the fourth quarter ended 31st March 2011. The net sales/income from operations for the fourth quarter is higher by 24.9% at Rs. 979.4 crore as against Rs. 784 crore in the fourth quarter of the year 2009-10. The Profit before Tax has improved by 10.8% to Rs.89.1 crore as against Rs. 80.4 crore in the fourth quarter of 2009-10. The net profit for the fourth quarter has grown by 53.4% to Rs. 57.5 crore, as against a net profit of Rs. 37.5 crore in the corresponding period of the financial year 2009-10.

During the year 2010-11, Gross Turnover crossed Rs. 2763 crore with 22.9% growth over the last year. The net sales/income from operations of the financial year 2010-11 is higher by about 23% at Rs. 2741 crore as against Rs. 2229 crore in the financial year 2009-10. For the year 2010-11, the Profit before Tax has improved by 9.1% to Rs. 218.9 crore as against Rs 200.6 crore in year 2009-10. The net profit for the period has grown by 22.8% to Rs.143.8 crore, as against a profit of Rs.117.1 crore in the corresponding period of the previous year.

All the strategic business units of the Company have done well. In comparison to the previous year, the E&P BU grew by 12.8% and crossed a turnover of Rs. 831 crore. The Appliances BU grew by 32.4 % to cross the Rs. 765 crore mark in sales turnover; the Fans BU grew by 35.9% and Lighting BU by 21.1% as also the Luminaires BU by 14.7%.

Mr. Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals Ltd said "The 4th quarter witnessed 24.9% growth in revenues and 9.9% EBIT. It was a difficult quarter with significant margin pressures due to commodity pressures. We have taken the right pricing decisions along with focus on profitable growth. The demand for all our products continues to be robust".

Mr. Anant Bajaj, Executive Director mentioned "The E&P BU has bounced back in the quarter with a revenue growth of 29.8 % and a growth in EBIT of 35.5%. The EBIT margin for the quarter was 10.53%. This is a significant turnaround. The order book as on March 31st stands at Rs. 750 crore, with Rs. 344 crore in TLT, Rs.303 crore in Special Projects, and Rs. 103 crore in Street Lighting and High Masts. The excellent lighting up of the Wankhede Stadium for the ICC World Cup 2011 Cricket Matches was a strong feather in our cap."

Mr. R. Ramakrishnan, Executive Director said "The quarter witnessed significant cost pressures due to high commodity prices of Copper and Aluminium. However, the company took strong measures in taking price increases in Fans and Appliances to shore up margins. The revenue growth across BU's in the quarter was 24.9%. We are confident that the company will continue on the path of profitable growth through network expansion, new product introduction, cost reduction initiatives, margin focus and brand building. The Consumer durables business has witnessed introduction of new products such as Pressure cookers, Water products, Pumps and DG sets. Our partner brands such as Morphy Richards and Trilux have also done well."

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