Bajaj Electricals expects a pickup in growth in the engineering and projects business in the fourth quarter helped by faster project clearances by the government.
Bajaj Electricals' third quarter net profit declined 19% year-on-year to Rs 32.84 crore due to a sharp fall in earnings in its engineering and projects (E&P) division.
The company's net sales for the October-December quarter were up 15% from a year ago to Rs 792.86 crore, as growth in consumer durables and lighting offset a slowdown in E&P.
"Consumer durables and lighting did well. Although of course E&P had a big slump year-to-year basis. The key factor is we had lot of old projects, which we had to close, for which there were certain over-runs. Then there were also lot of projects, which were getting delayed courtesy certain clearances from the government," Anant Bajaj, ED, told moneycontrol.com.
The company is now choosey in selecting projects, depending on the margins they offer, he said. As of Feb 1, Bajaj Electricals has an order book of Rs 783 crore in the E&P business, he added.
The company has maintained a revenue target of Rs 3,200-3,300 crore for the current fiscal year.
Bajaj Electricals shares closed down 2.1% at Rs 170.75 on NSE on Monday.