Bajaj Electricals Q1 net up 9% at Rs 12 cr
Bajaj Electricals' first quarter net profit rose 9% year-on-year to Rs 12 crore, as strong sales growth in consumer appliances was offset by continued sluggishness in engineering and projects business.
July 26, 2012 / 14:43 IST
Moneycontrol Bureau
Bajaj Electricals' first quarter net profit rose 9% year-on-year to Rs 12 crore. But strong sales growth in consumer appliances and lighting was offset by pressure on margins and continued sluggishness in engineering and projects (E&P) business, sending shares down over 5%.Its quarterly net sales rose 22% to Rs 666 crore.In April-June, Bajaj Electricals' consumer durables and lighting segments reported revenue of of Rs 390 crore and Rs 152 crore respectively, a growth of 29% and 20%.However, E&P sales grew at a much slower 8% to Rs 123 crore."The market conditions for the Engineering and Project segment remained tough with overall slow pace of infra sector growth," Bajaj Electricals said. The E&P segment posted a loss of Rs 7 crore in the quarter, compared with a loss of Rs 7.6 crore in the year ago quarter and a profit of Rs 20.5 crore in Jan-March.Profits in the lighting business were flat year-on-year at Rs 7 crore. On a sequential basis, segment profit was down 65%. Consumer durables business reported a profit of Rs 33 crore, up 14% year-on-year, but down 21% quarter-on-quarter.Despite, strong sales in consumer durables and lighting segments, its margins were impacted by volatile commodity prices, exchange rate fluctutations, which pushed up purchase price of products, said Shekhar Bajaj, CMD.Bajaj Electricals shares were down 5.4% at Rs 173.75 on NSE in afternoon trade. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
