Bajaj Electricals Q2 profit down 10.7% to Rs 16.66 crore

Bajaj Electricals today reported a decline of 10.76 per cent in its standalone net profit to Rs 16.66 crore for the quarter ended on September 30, 2016 on account of sub optimal performance of lighting segment and increase in costs.
The company had registered a net profit of Rs 18.67 crore in July-September period a year-ago, Bajaj Electricals said in a BSE filing.
Its total income from operation was down 10.36 per cent to Rs 1,005.75 crore during the quarter under review as against Rs 1,122.08 crore of the corresponding quarter of the previous fiscal.
Its total expenses were at Rs 967.57 crore, down 10.12 per cent, as against Rs 1,076.56 crore.

Commenting on the results Bajaj Electricals CMD Shekhar Bajaj said:" The Lighting BU of the Consumer Products Segment registered a sub optimal performance largely due to drop in demand for CFL and absence of EESL order for LED products in the current year as against the previous year. The sales of Lighting BU have de-grown by 31 per cent."
He further added: "To enhance the brand recall and support RREP distribution model, the Company continued its advertising spend during major events such as RIO Olympics, Wimbledon, Pro Kabaddi, etc. This coupled with increase in staff cost and other fixed costs, impacted the overall margins of the Consumer Products Segment".

During the third quarter of 2015-16, Bajaj Electricals revenue from consumer products segment was down 5.50 per cent to Rs 566.12 crore as against Rs 599.13 crore of Q2 FY15-16

Its EPC segment was also down 15.95 per cent during the quarter under review to Rs 439.28 crore as against Rs 522.66 crore, it added.
In the first half of 2016-17, Bajaj Electricals standalone net profit was up 1.09 per cent to Rs 39.53 crore as against Rs 39.10 crore in the year-ago period.
Its total income in the first half of the current fiscal was down 7.63 per cent at Rs 1,965.11 crore as against Rs 2,127.55 crore in the same period last year.

Shares of Bajaj Electricals today settled at Rs 230.85 on BSE, down 5.62 per cent from previous close.