Bajaj Electricals Reports 24.3% YoY Decline in Q1 Net Profit Amidst Marginal Revenue Growth”

Introduction: Bajaj Electricals Ltd has announced its financial results for the first quarter of the fiscal year ending June 30, 2024, revealing a decline in net profit despite a modest increase in revenue. The company posted a 24.3% year-on-year (YoY) drop in its consolidated net profit, which stood at ₹28.1 crore, compared to ₹37.13 crore in the same quarter of the previous year.

Financial Highlights:

• Net Profit: The company’s net profit for the June 2024 quarter fell to ₹28.1 crore, marking a significant 24.3% decline from the ₹37.13 crore reported in the corresponding quarter last year. Sequentially, the net profit also dipped by 4.1% from ₹29.3 crore recorded in the preceding quarter.
• Revenue Growth: Despite the drop in profit, Bajaj Electricals’ revenue from operations grew by 3.8% YoY, reaching ₹1,154.9 crore for the quarter, up from ₹1,108 crore in the same period last year. However, on a quarter-on-quarter (QoQ) basis, revenue declined by 2.5% from ₹1,181 crore reported in the final quarter of the previous fiscal year.
• EBITDA Performance: The company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter was ₹76 crore, slightly down by 1% from ₹77 crore in the year-ago period. The marginal decline in EBITDA indicates a slight erosion in operating efficiency.

Market Context: In the broader market, companies like Britannia, JSW Steel, and Tech Mahindra showed gains, with Britannia leading the pack with a 2.75% increase. However, Bajaj Electricals faced challenges in maintaining profitability despite a rise in revenue, reflecting sector-specific pressures or internal cost challenges.

Conclusion: Bajaj Electricals’ first-quarter results highlight a mixed performance with modest revenue growth overshadowed by a significant decline in net profit and stable but slightly reduced EBITDA. The company will need to address the factors contributing to the drop in profitability to regain investor confidence as it moves forward in the fiscal year.

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