India's Bajaj Electricals Q1 profit misses view on sluggish appliances demand

Bajaj Electricals

06/08/2024 09:47

BENGALURU, Aug 6 (Reuters) - India's Bajaj Electricals  BJEL.NS  posted a smaller-than-expected first-quarter profit on Tuesday,
hurt by dampened demand for kitchen appliances and price erosion in key lighting segment. 
    Its consolidated net profit fell 25% to 281.1 million rupees ($3.4 million) for the quarter ended June 30, missing consensus analysts
expectation of 323 million rupees, as per LSEG data. 
    Net sales grew 4% to 11.52 billion rupees, falling slightly short of analysts estimate of 12 billion rupees. 
    However, the company said it was confident of a pickup in demand in the second half of this fiscal year, as consumer demand has
already bottomed out. 
    
 KEY CONTEXT 
 
India's summer extends from March to May, but many cities experienced unusually warm weather in June as well, which led to a surge in
demand for cooling appliances.
    However, analysts said that demand for kitchen appliances remained sluggish and high competition in the lighting segment saw price
erosion in the category, leading to home appliance makers posting mixed set of earnings during the quarter. 
   Crompton Greaves  CROP.NS  and Whirlpool India  WHIR.NS  reported better-than-expected results, while Polycab  POLC.NS  posted a
profit drop.
 
 
 PEER COMPARISION 
 
                                    Valuation (next 12 months)    Estimates (next 12 months)         Analysts' sentiment         
                        RIC        PE     EV/EBITDA  Price/Sales  Revenue     profit growth   Mean     # of       Stock to       Div
                                                                  growth                      rating*  analysts   price          yield
                                                                                                                  target**       (%)
 Bajaj Electricals       BJEL.NS   44.73  26.01      NULL         15.83       51.57           BUY      7          0.93           0.31
 Havells India           HVEL.NS   63.02  42.76      5.02         20.44       26.67           HOLD     21         0.95           0.50
 Crompton Greaves        CROP.NS   43.55  28.33      2.77         12.88       31.62           BUY      31         0.91           0.70
 Consumer Electricals                                                                                                            
 Polycab India           POLC.NS   44.98  31.12      4.45         17.96       19.55           BUY      24         0.94           0.46
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
 
 
  APRIL-JUNE STOCK PERFORMANCE
    
 
    
 
 -- All data from LSEG


($1 = 83.9400 Indian rupees)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Bajaj Electricals    https://tmsnrt.rs/3A9CAmK
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Nishit Navin; Editing by Rashmi Aich)
 ((Nishit.Navin@thomsonreuters.com;))