The earnings before interest and tax (EBIT) for the CP segment stood at Rs 142 crore, showing a 115 percent rise over the year-ago period. The management said the CP business has delivered a strong growth in this quarter despite continuing supply challenges and increase in commodity prices and has delivered its highest ever quarterly EBIT. The EPC segment has reduced its loss, while continuing to focus on execution and working capital, it said.
“We continue to remain structurally positive on Bajaj Electricals
given strong brand with leadership position in kitchen appliances; deep distribution network and RREP led gains in profitability, reach and working capital. Benefitting from operating leverage and changing mix, we build in 420bps margin expansion over FY20-23,” analysts at Prabhudas Lilladher said in result update.
Analysts at ICICI Securities believes strong demand outlook of CP category along with focus on acceleration of collections in the EPC business would further improve P&L and balance sheet of Bajaj Electricals, going forward. Given the strong performance and future outlook we tweak our earnings estimate upward by 37 per cent, 47 per cent for FY22E, FY23, respectively, the brokerage firm said in stock update.
At 11:42 am, Bajaj Electricals
was up 16 per cent at Rs 1,065 on the BSE, against 1.3 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold with a combined 3.8 million equity shares changing hands on the NSE and BSE.