BAJAJ ELECTRICALS Announces Quarterly Results (1QFY20); Net Profit Down 57.1%

Tue, 13 Aug

BAJAJ ELECTRICALS has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

BAJAJ ELECTRICALS Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	11,399	17,729	12,978	-26.8%	13.8%
Other income	Rs m	93	263	179	-31.7%	92.7%
Turnover	Rs m	11,492	17,992	13,157	-26.9%	14.5%
Expenses	Rs m	10,601	17,036	12,228	-28.2%	15.3%
Gross profit	Rs m	798	694	750	8.0%	-6.1%
Depreciation	Rs m	92	99	161	62.8%	76.0%
Interest	Rs m	177	419	495	18.1%	179.9%
Profit before tax	Rs m	623	439	273	-37.7%	-56.2%
Tax	Rs m	218	153	99	-35.3%	-54.5%
Profit after tax	Rs m	405	285	174	-39.0%	-57.1%
Gross profit margin	%	7.0	3.9	5.8
Effective tax rate	%	34.9	34.9	36.3
Net profit margin	%	3.5	1.6	1.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 13.8% on a year-on-year (YoY) basis. The expenses were up by 15.3% YoY during the same period.
• The company's operating profit declined by 6.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 5.8% in 1QFY20 as against 7.0% in 1QFY19.
• Depreciation charges increased by 76.0% and finance costs increased by 179.9% YoY, respectively.
• Other income increased by 92.7% YoY during the quarter.
• Net profit for the quarter declined by 57.1% YoY. Net profit margins during the quarter declined from 3.5% in 1QFY19 to 1.3% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 26.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 28.2% QoQ during the same period.
• The company's operating profit increased by 8.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 5.8% in 1QFY20 as against 3.9% in 4QFY19.
• Net profit for the quarter declined by 39.0% QoQ, while net profit margins declined from 1.6% in 4QFY19 to 1.3% in 1QFY20.

To see how BAJAJ ELECTRICALS has performed over the last eight quarters,please visit here.

BAJAJ ELECTRICALS Share Price Performance

Over the last one year,BAJAJ ELECTRICALS share price has moved down from Rs 556.0 to Rs 382.3, registering a Loss of Rs 173.7 or around 31.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 22,742.2 (up 0.1%). Over the last one year it has moved up from 21,960.4 to 22,742.2, a gain of 782 points (up 3.6%).

Overall, the S&P BSE SENSEX is down 1.2% over the year.

Current Valuations

At the current price of Rs 382.3, the price to earnings (P/E) ratio of BAJAJ ELECTRICALS stands at 26.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.1 times.