Bajaj Electricals today reported a decline of 10.36 per cent in net profit to Rs 20.50 crore for the first quarter ended June 30, 2017 as sales of its consumer products segment was impacted on account of GST rollout.

The company had registered a net profit of Rs 22.87 crore in April–June period a year-ago, Bajaj Electricals said in a BSE filing. However, its total income from operations was up 7.30 per cent to Rs 1,029.41 crore as against Rs 959.36 crore in the year-ago period.

“The performance of consumer products segment was impacted primarily on account of drop in sales ahead of GST rollout on July 1, 2017 and drop in margin as a result of one-time compensation that the company has to pay to its dealers/distributors for losses incurred by them on account of introduction of GST,” said Bajaj Electricals CMD Shekhar Bajaj.

Total expenses were at Rs 1,007.15 crore, up 8.01 per cent, as against Rs 932.43 crore the previous year. During the quarter, Bajaj Electricals’ revenue from consumer products segment was down 14.28 per cent to Rs 469.53 crore as against Rs 547.78 crore in June quarter of last fiscal.

Its EPC segment was up 36.06 per cent during the quarter under review to Rs 559.83 crore, as against Rs 411.44 crore. “EPC has registered a good performance backed by strong project execution, registering 36 per cent growth in revenue from operations and improvement in operating profit by 29 per cent from Rs 30.87 crore to Rs 39.77 crore, over the corresponding previous period,” Bajaj added.

On outlook, Bajaj said that he expects the company to cross Rs 5,000 crore sales this fiscal.“Around 10 per cent growth would come from consumer products segment and EPC segment has a current order book that stands at Rs 3,380 crore,” he added.

Shares of Bajaj Electricals today settled at Rs 327.70 on BSE, down 0.41 per cent from previous close.

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