India's Bajaj Electricals misses Q4 profit view on sluggish demand

Bajaj Electricals

14/05/2024 11:32

BENGALURU, May 14 (Reuters) - Consumer appliances maker
Bajaj Electricals  BJEL.NS  reported a fourth straight quarter
of profit decline on Tuesday, missing estimates due to sluggish
demand for its lights, water heaters and kitchen appliances.
    The Mumbai-based company said consolidated net profit fell
to 293.1 million rupees ($3.5 million) for the three months
ended March 31, from 518.5 million rupees a year earlier. 
    Analysts, on average, had expected a profit of 573.2 million
rupees, as per LSEG data.
    Revenue from its lighting products segment fell 11.3% to
2.71 billion rupees, while revenue from the segment that makes
air coolers, fans, room heaters and kitchen appliances, reported
a drop of 7% as consumers postponed discretionary purchases
amidst persistent inflation.
    Sales in its lighting products segment dropped due to lower
prices of LED products in consumer lighting and a higher base
effect in professional lighting, the company said in a
statement. 
    Additionally, the company approved a proposal to borrow
funds through the issuance of non-convertible debentures, up to
an amount not exceeding 5 billion rupees, via private placement.
    The board also recommended a dividend of 3 rupees per share
for the fiscal year ended March.
    Shares of Bajaj Electricals closed 3% higher on Tuesday and
are down 4% so far this year.

($1 = 83.5064 Indian rupees)

 (Reporting by Navamya Ganesh Acharya in Bengaluru)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))