Bajaj Electricals back in black in Q2, posts net profit of Rs 53.1 crore

Consumer electricals firm Bajaj Electricals was back in black in the September quarter (Q2) and posted consolidated net profit of Rs 53.11 crore.

The company had a net loss of Rs 32.54 crore in the year-ago period.

For the quarter, Consumer Products (CP) segment earned total revenue of Rs 792 crore, which is a YoY growth of 12.9 percent.

EPC segment has achieved a total revenue of Rs 425 crore, showing an 8 percent YoY growth. Here, the company reported a positive EBIT of Rs 7 crore in Q2 as against negative EBIT of Rs 18 crore in the same period last year.

Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals said that the consumer products business has shown signs of very strong recovery in this quarter and delivered our highest ever quarterly EBIT (earnings before interest and taxes) of Rs 85 crore.

He added that the EPC segment has also recovered strongly in this quarter after being adversely affected due to hold up of project execution and billings.

"We have maintained our strong focus on cashflows from operations in this quarter too, generating a healthy Rs 322 crore thereby further reducing our debt significantly," said Bajaj.

For the half year ended September 30, the company generated positive cashflow from operations of Rs 467 crore as against Rs 294 crore in the corresponding half year of the previous year. The debt has reduced from Rs 962 crore at the end of FY20 to Rs 559 crore at the end of Q2FY21.

The order book as on October 2020 stands at Rs 1,474 crore. This comprises of Rs 482 crore for transmission line towers, Rs 602 crore for power distribution, and Rs 390 crore for illumination projects.