Bajaj Electricals eyes Rs 5,000cr revenue; Q1 net up 12%

Bajaj Electricals, which reported nearly 12 per cent rise in net profit to Rs 22.87 crore for April-June, today said it is eyeing a revenue of Rs 5,000 crore this fiscal with the EPC division contributing half of the targeted turnover.
Last year, the Pune-based manufacturer of lights, fans and appliances had clocked a revenue of Rs 4,600 crore, with the EPC (engineering, procurement & construction) division accounting for Rs 2,100 crore.
"By end of the year (FY17) we should reach a level of Rs 5,000 crore. Majorly the growth will come from the EPC segment, so we can expect a 20 per cent growth coming from the EPC division," Bajaj Electricals Chairman and Managing Director Shekhar Bajaj told PTI here.

Meanwhile, the company today reported an 11.94 per cent increase in net profit to Rs 22.87 crore for the first quarter ended June 30. It had posted a net profit of Rs 20.43 crore in the same period last fiscal.
Total income from operations stood at Rs 959.36 crore as against Rs 1,005.46 crore in the same quarter last fiscal, down 4.58 per cent.
"Earlier we were focusing on top line but now we are focusing on profitability and proper distribution of our products. We are doing some correction by not going through the wholesale segment but going through a distribution segment, so that the market can be stable.

"We are not giving away extra discount just to improve our top line and are becoming more margin conscious. So our margins have improved, profitability has gone up and our working capital has come down," he said.

Revenue from consumer products division stood at Rs 547.78 crore during the April-June period, down from Rs 593.04 crore in the same period a year ago.
"In first quarter (this fiscal) we have de-grown but we hope the second quarter will be better and the third quarter will be even better. By end of the year, the consumer products division will see a positive growth," he said.

EPC division's revenue was Rs 411.44 crore in the quarter under review as against Rs 412.30 crore in the same period last year.
Bajaj said the EPC division's order book stands at Rs 2,476 crore.
The company spends Rs 100 crore on advertising, including Rs 10-12 crore on digital promotion.