On a consolidated basis, the gross sales were down 32 percent year-on-year (YoY) to Rs 1,074.64 crore in Q2
Electrical goods maker Bajaj Electricals on November 6 reported a consolidated net loss of Rs 32.54 crore for the quarter ended September 30. In the year-ago period, the firm had posted a net profit of Rs 29.83 crore.
On a consolidated basis, the gross sales were down 32 percent year-on-year (YoY) to Rs 1,074.64 crore in Q2.
For the quarter, the consumer products segment revenue grew by 9 percent YoY to Rs 701.52 crore. However, the EPC segment revenue dipped by 58.8 percent YoY to Rs 393.81 crore.
In July 2019, ICRA had downgraded the credit ratings of a few debt instruments of the company due to the increasing leveraging level and the subsequent weakening of debt coverage metrics.
Similarly, in August 2019, CARE Ratings downgraded the credit rating of the company's commercial paper from 'Care Al+ (A One Plus)' to 'Care Al (A One)' due to the moderation in liquidity profile marked by large accumulation of receivables under engineering procurement commissioning (EPC) division. This accumulation had affected the cash generated from operations for financial year 2019.
The company said that it has repaid loans worth Rs 127.11 crore on a net basis in H1FY20.
For the half year, Bajaj Electricals generated positive cashflow from operations of Rs 294.17 crore compared to negative cash outflow Rs 471.35 crore a year ago.
Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals, said: "We have been pursuing our stated path of a strong focus on positive cashflow from operations, reducing our debt and strengthening our balance sheet and we have done well on all of these parameters."
Bajaj added that their consumer products segment has registered a moderate growth of 9 percent in top-line on account of overall slowdown in the economy, while the EPC segment has registered a planned de-growth due to reduction in fresh bidding. He also said that this in the near future will continue to impact our profitability, but we are confident about a healthy bounce back as our strategic shift plays out.”The current order book stands at Rs 1,799 crore, consisting of Rs 881 crore of transmission line towers, Rs 778 crore of power distribution and Rs 140 crore of illumination projects.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.