Bajaj Electricals Q4 loss at Rs 10.65 cr on cost overruns

Bajaj Electricals today reported a loss of Rs 10.65 crore for the fourth quarter ended March 31, 2014 due to cost overruns and site closure expenses for the E&P Projects and reduced margins in consumer durable and lighting segments.
The company had posted a net profit of Rs 63 lakh in the January-March period of 2012-13, Bajaj Electricals said in a statement.
However, Bajaj Electricals' net sales during the quarter under review increased to Rs 1,269.51 crore against Rs 1,099.74 crore in the year-ago period on completion of projects.
For the financial year 2013-14, Bajaj Electricals had a net loss of Rs 5.31 crore. It had reported a profit of Rs 51.21 crore in the previous fiscal.

The net sales for the year increased to Rs 4,024.04 crore from Rs 3,370.58 crore in 2012-13.
"The year gone by was very tough... In the fourth quarter volumes did not pick up and margins were down in the consumer durables and lighting segment due to continued discounts and it impacted our bottom line," Bajaj Electricals Chairman and Managing Director Shekhar Bajaj told PTI.

However, the company is bullish for the current fiscal and expecting an overall growth of 15 per cent.
"In the lighting and consumer durable segment, we would grow about 10 per cent and 25 per cent in the engineering and projects division. Our overall growth expectation would be 15 per cent," said Bajaj.

According to him, a stable rupee and the new government would help in creating the market sentiments. It would help people to purchase goods.
"Stronger rupee and stable government at the centre, the management expect the performance of the current financial year would be good," he added.
Bajaj Electricals, which is celebrating platinum jubilee this year has recommend a dividend of 75 per cent for the year 2013-14 to commemorate its 75 years.
Shares of Bajaj Electricals today closed down by 13.60 per cent at Rs 319.90 on the BSE.