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. 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. 

TRENDING NOW

Global investment fund Saint Capital picks up stake in OK Play India

Indian equity market set to see inflow of $3.6 billion after US federal pension fund switches index

DB Realty promoters sell nearly 3% in company for Rs 301 crore; reinfuse capital to cut debt

MCX shares hit an all-time high after board decides to recover tech cost from MCXCCL for old platform

Novartis aims for 5% annual sales growth through 2027

Honasa Consumer shares slide after firm is reportedly set for a block deal

Chinese firms set for best earnings growth in seven years in 2024

Delhi air quality sees slight improvement after rainfall

Government to launch first round of auction of critical, strategic minerals on November 29; 20 blocks to be put on sale

Anil Singhvi strategy November 28: Important levels to track in Nifty50, Nifty Bank today

Mercedes-Benz inaugurates first German charging hub in Mannheim

BSE shares have zoomed over 280% in one year; Jefferies recommends buying the shares. Here is why

Commodity Capsule | Crude oil prices range-bound, copper moves up | Watch video

1:1 Bonus Share: This FMCG company approves bonus issue - Check Details

HPCL, BPCL and IOCL shares hit 52-week highs after crude oil prices slip below $80/barrel

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.