Moneycontrol News
Bajaj Electricals posted a 98 percent year-on-year increase in its net profit for the June quarter to Rs 40.5 crore, on the back of strong growth in its consumer durables business.
The consumer durables segment overtook engineering, procurement and construction (EPC) to become the largest contributor to the company's overall revenue.
For the first quarter of FY19, the company saw its income from operations grow 10.7 percent on year to Rs 1,139.93 crore.
Among the various segments it operates in, Bajaj Electricals fared the best in the consumer products segment, revenue from which rose 27.1 percent YoY to Rs 596.86 crore.
Revenue from the EPC business fell 3 percent on year in the quarter under review to Rs 542.96 crore. The company said that the costs incurred by them to set up infrastructure for new power distribution orders from Uttar Pradesh impacted its margins.
"Consumer products segment has registered a splendid performance in terms of top line growth and improvement in margins. Revenue has grown by 27.1 percent driven by strong growth in LED products, fans and certain kitchen and domestic appliances," said Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals.
During the reporting quarter, the company inked an agreement to acquire Nirlep Appliances. It will acquire an 80 percent stake in Nirlep for Rs 34 crore, following which the latter will become its subsidiary.
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