Bajaj Electricals net profit in the first quarter of FY20 declined 64 percent year on year (YoY). The consumer products division, despite reporting a stellar growth of 30 percent on topline, saw margin compression.
Discussing the numbers in detail, Bajaj Electricals Chairman and Managing Director Shekhar Bajaj said growth in topline was on the back of new products and focus on distribution. The growth of the company has been better than the industry.
Although the company has the approval for qualified institutional placement (QIP), time line for it has not been decided. However, it would decide to do the QIP once stock prices stabilise. QIP would mainly be for debt reduction. The debt equity ratio currently is around 1.5 and the firm aims to bring it below 1. We expect to be cash positive in FY20, says Bajaj.
The company's fan sales went up by 40 percent and cooler sales were up 100 percent, while appliances grew by 36 percent, Morphy Richards grew by 12-13 percent and lighting products' growth was about 5-6 percent.
Talking about revenues, Bajaj said the total revenues in FY20 would be around Rs 5,500-6,000 crore. Of this, consumer business will be Rs 3,000 crore plus and EPC is expected to be around Rs 2,500 crore.