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Research
Views on Bajaj Electricals Ltd 4QFY2014 results - Angel Broking
Posted On : 2014-06-08 20:23:56( TIMEZONE : IST )
Views of Ms. Twinkle Gosar (Equity Research Associates-Mid Caps, Angel Broking) on Bajaj Electricals Ltd 4QFY2014 results:
"Bajaj Electricals Ltd. (BEL) reported disappointing set of numbers for 4QFY2014. Top-line reported growth of 15.3% yoy to Rs. 1,271cr, higher than our estimate of Rs. 1,214cr. The growth in top-line was mainly led by E&P segment which posted yoy growth of 54.1% to Rs. 440cr. Lighting and luminous (LnL) segment grew marginally by 4.2% while Consumer durables (CD) dip by 2.0% yoy. On EBITDA front, BEL reported profit of Rs. 5.5cr, lower by 58.5% yoy while margins contracted by 77bp to 0.4% owing to higher other expenses. At EBIT levels, both CD and LnL segment reported margin of 3.6% and 3.0%; lower by 447bp and 488bp yoy respectively. Further, E&P segment, reported EBIT loss of Rs. 20cr, 4.7% of the segment revenue as compared to EBIT loss of Rs. 51cr in 4QFY2013. Following the poor operating performance, BEL reported PAT loss of Rs. 10.7cr vis-Ã -vis 0.63cr profit in same quarter last year.
On annual front, top-line for the year grew by 19.0% to Rs. 4,090cr driven by robust growth of 27.0% in E&P segment, followed by 10.7% and 4.8% growth in LnL and CD segment. EBITDA for FY2014, dip by 26.1% to Rs. 82cr while margins stood at 2.0%, lower by 130bp attributable mainly to increased raw material expense. On segmental front, EBIT for CD and LnL came in at 7.7% and 5.1% while E&P reported EBIT loss of Rs. 103cr; thereby dragging the overall performance of the company. As a result, bottom line reported net loss of Rs. 5.3cr for FY2014 as compared to profit of Rs. 35cr previous year.
Considering the continued disappointing performance of E&P segment and drop in performance of the CD and LnL segment we take a conservative stance on the company until the E&P segment starts delivering positive numbers going forward. Also, looking at the recent rally in the stock, we recommend Neutral rating on the stock."
Shares of BAJAJ ELECTRICALS LTD. was last trading in BSE at Rs.320.55 as compared to the previous close of Rs. 319.45. The total number of shares traded during the day was 54547 in over 2966 trades.
The stock hit an intraday high of Rs. 329.45 and intraday low of 316.8. The net turnover during the day was Rs. 17656907.
