Bajaj Electricals’ Q1 earnings came in slightly below street expectations. In an interview to CNBC-TV18, Shekhar Bajaj, CMD of the company spoke about the results and his outlook going forward.
We have had a growth of 7.3 percent in totality in Q1 FY18 but for consumer product segment, we have lost 14.3 percent negative growth and engineering, procurement and construction (EPC) has grown by 36 percent, he said.
EPC business did not face any issues due to goods and services tax (GST), said Bajaj.
He expects sales to pick up in Q2 especially from August and Q3 and Q4 should be strong, he added.
Volume growth for consumer products is expected at 10 percent. Because of GST being 28 percent, our original billing price will be reduced by about 7-8 percent average so that the consumer price remains same. So the revenue growth in consumer products growth limited to 2-3 percent, he further mentioned.
He also said that profit not impacted due to GST.
He expects 20 percent growth in EPC business in FY18 because EPC orderbook currently is at Rs 3,300 crore.
For full interview, watch accompanying video...
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