Company benefitting from expansion of distribution channels, consumer segment leads growth: Shekhar Bajaj, CMD, Bajaj Electricals
Bajaj Electricals posted a better year-on-year March quarter profit. The company's net income for March quarter went up to Rs 28.4 crore.
Bajaj Electricals posted a better year-on-year March quarter profit. The company's net income for March quarter went up to Rs 28.4 crore. The company's income from operations has been at Rs 1,772.94 crore, against Rs 1,606.27 crore in the fourth quarter, a year-on-year growth of 10.4 percent. Consumer segments and EPC both have seen better grow in this quarter. The consumer products segment continued to reap the benefits of range and reach expansion programme (RREP). The company's Chairman and Managing Director Shekhar Bajaj told Zee Business TV that benefits from the expansion of distribution channels of the company is now materialising.
Bajaj said that the company has witnessed 20-25 percent quarter-on-quarter growth in the first three quarters and 15 percent in the last quarter. This is much better than the peers. The company's EBITDA margin also growing at a health rate, he said.
"The company will see further growth in consumer products business. There will be growth in the topline and bottomline. The profitability in the consumer segment will substantially grow. As far as the EPC business is a concern, we receive a big order from the UP government in this segment, and due to that the turnover increased from last year's Rs 23 crore to Rs 36 crore, which is 60 percent year-on-year growth," Bajaj said.
However, in the fourth quarter, the growth in EPC business has been only at 7 percent. This is the reason why the profitability is down in EPC segment.
The cashflow of the company will improve when it will start giving returns in the coming years. There is not much problem of financing in the consumer business, which comes through financial channels. The business we do in the government sector, there need financing.