Covid impact: Bajaj Electricals reports ₹17-cr net loss in Q1

Our Bureau Mumbai | Updated on August 11, 2020

Bajaj Electricals on Tuesday posted a consolidated net loss of ₹16.60 crore for the first quarter of this financial year, affected by the Covid-19 pandemic. It had posted a consolidated net profit of ₹13.7 crore in the corresponding quarter of last year.

The company’s total revenue from operations during the June quarter stood at ₹608.29 crore, compared to ₹1,307.06 crore of the year-ago period, marking a decline of 53.46 per cent.

The outbreak of Covid-19 globally and in India has caused significant disturbances and slowdown of economic activity, the company said in a regulatory filing. The company’s operations have also been impacted in March, April and May due to the temporary suspension of manufacturing facilities, sales and distribution and execution of EPC contracts following the nationwide lockdown announced by the Government in view of Covid-19, it said.

However, post the permission for operations of certain activities by the Government in non-containment zones, the company has resumed operations at its manufacturing units in Chakan and Ranjangaon, branches, and at all warehouses across the country, it said. “Most of the company’s EPC sites are also operational now. Further, the company has adequate financial cushion to take care of the requirement of funds,” it said.

“This has been a quarter amidst unprecedented times. We have focussed on controlling short term impact while continuing to work towards our long term strategic goals. Our consumer products business has shown signs of strong recovery in the latter half of this quarter, thus delivering a positive segment-level EBIT. Our EPC segment has been adversely affected due to the hold up of project execution and billings and incurred a loss. Nonetheless, we have maintained our strong focus on cashflows from operations in this quarter too, generating a healthy ₹145 crore, thereby further reducing our debt significantly,” said Shekhar Bajaj, Chairman and Managing Director of Bajaj Electricals Limited.

During the quarter, the consumer products segment earned a total revenue of ₹ 395 crore as against ₹786 crore of the corresponding quarter last year, marking a de-growth of 49.8 per cent. The EPC segment had a total revenue of ₹213 crore as against ₹521 crore of the year-ago period, registering a de-growth of 59 per cent.

During the quarter ended June 30, 2020, NCLT, Mumbai Bench by its order dated May 21, 2020, has approved the scheme of arrangement for demerger of the manufacturing undertaking of the Hind Lamps Limited (associate of the Company) into the company, it said. Bajaj Electricals has accounted for the demerger, resulting in a gain of ₹28 crore, which has been disclosed as an exceptional item in the financial results. Further, ₹14 crore has been credited to other comprehensive income and accumulated in equity as capital reserve, it said.

Published on August 11, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like