Bajaj Electricals Q4 Results Review - Sequential Recovery Expected In Q1 FY25: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Bajaj Electricals Ltd.’s Q4 result (revenue/Ebitda/profit after tax down 8%/47%/43% YoY) was dragged by weak performance in the consumer product business (revenue down 7% YoY; Ebit margin 1.8%, down 481 basis points YoY marred by high discounting). Prime draggers were kitchen appliances, general trade (down 3%) and Bajaj Electricals' high dependance on slow moving rural market and non-premium categories. Fans, air coolers and Morphy Richards grew well though. Despite weak earnings, cash flow stayed healthy (generated cash flow from operation of Rs 1.47 billion in Q4 and Rs 3.53 billion in FY24), aided by improved working capital cycle. Cash surplus at FY24 end stood high at Rs 3.05 billion. Outlook of the lighting segment (Q4 revenue down 11% YoY; Ebit margin 8.5%, up 107 bps YoY) remained healthy. April saw better demand in both the segments; Q1 FY25 looks better than Q4 FY24. Price hike in fans is scheduled from 16th May. After a weak Q4, we have cut our earnings estimates by 7-10% on lower revenue and margin expectations. On the low base, we now expect 16%/53%/76% compound annual growth rate in revenue/Ebitda/PAT over FY24-26E, with 9.5% Ebitda margin, ~29% return on capital employed and 40%+ return on invested capital in FY26E. Maintain Buy with a lower target price of Rs 1,092 (30 times FY26E price/earning)..Click on the attachment to read the full report:.Bajaj Electricals Q4 Results: Net Down 43.4% To Rs 29 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Electricals Q4 Results Review - Sequential Recovery Expected In Q1 FY25: Systematix

Consumer lighting business is the new growth area for Bajaj Electricals; reduction in logistics cost would boost margins by 2%.

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