 "Bajaj Electricals Q2 results: Profit drops 24% on JV losses, higher taxes")
Indian appliances maker Bajaj Electricals reported a dip in second-quarter profit on Friday as losses from a joint venture and higher tax expenses weighed, while demand for its mainstay cooling products also faltered.
The Bajaj Group firm's consolidated net profit declined about 24 per cent to 98.6 million rupees ($1.12 million) in the quarter ended September 30.
It incurred losses of 47.7 million rupees related to a joint venture and a total tax expense of 56.4 million rupees. The company did not specify details.
Net sales fell 1 per cent to 11.03 billion rupees in the quarter, led by a 4 per cent drop in its consumer products business to 8.33 billion rupees.
Shares of the company reversed course to trade 0.6 per cent lower after the results.
KEY CONTEXT
Indian consumer durable firms have seen strong demand for electrical and lighting equipment as government spending on infrastructure remained strong and as the real estate sector boosted demand.
However, sales of cooling products were muted in the quarter, a trend that extended from last quarter, as a longer-than-expected monsoon dented demand.
The firm's electrical segment contributes 75 per cent of the sales, while lighting products account for the rest.
Apart from its cooling products - coolers and fans - it sells items including kitchen appliances, heaters and cooktops.
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