- 24 May 2023
- ICICIdirect Research
BAJAJ ELECTRICALS REPORTED A MIXED BAG PERFORMANCE IN Q4FY23
BAJAJELEC - 657 Change: -17.95 (-2.66 %)News: Consolidated net sales increased by ~12% YoY to ~Rs 1490.1 crore. The consumer product segment revenues increased by ~8.6% YoY to ~ Rs 986.5 crore. The lighting division revenue grew marginally by ~1% YoY to Rs 305.4. Company’s Engineering & Project (E&P) division revenues increased by ~60% YoY to Rs 198 crore. The gross margin remained flat on a YoY basis (down 385 bps QoQ) to 29.2%. EBITDA margin improved by 101 bps YoY to 5.7% led by savings in operating expenses. The EBIT margin of lighting segment declined by ~256 bps YoY to 8.5%. However, EBIT margin of consumer products segment improved by ~290 bps YoY to 7.9%. PAT came in at Rs 51.85 crore up by ~34% YoY tracking topline growth
View: We believe Bajaj Electricals reported strong revenue growth in Q4 led by the consumer products segment amid strong demand. We believe, improvement in consumer products segment EBIT margin is on the back of normalising advertisement expenses and better sales growth. However, we believe, the company's lighting segment has remained under pressure due to distribution restructuring.
Impact: Neutral