Bajaj Electricals Ltd’s shares were down by 2 per cent after the company reported a 9.8 per cent decrease in profit for the quarter ended June 30, 2023, at ₹37.13 crore compared to ₹41.19 crore during the corresponding quarter last year.

The company’s revenues were down by 1.5 per cent to ₹1,112.13 crore compared to ₹1,129.19 crore last year. Sequentially, the company’s profits were lower by 28 per cent compared to ₹51.85 crore in the previous quarter.

In a note, ICICI Securities said, “While Bajaj Electricals reported weaker Q1FY24 than peers and our expectations, we note that the EPC business is likely to be demerged very soon (3-4  months), and Bajaj  Electricals has repaid the debt and has net cash balance sheet. Hence,  it can leverage the cash flows to grow the consumer business in FY24–25, and (2) it plans to invest in Nex (new brand) and Nirlep (relaunch). The success of these two brands will create new revenue streams for premium products and kitchen appliances. As the issue of disruption in trade due to regulatory changes in fans is largely over, the company is likely to report healthy revenues from the holiday season in H2FY24. We remain constructive and maintain an ADD rating with DCF based revised target price of INR 1,320 (implied P/E 44x FY25E; Earlier TP: INR 1,300).”

The share price were down by 2 per cent to ₹1193 at 10.04 am on BSE.