Recently, Bajaj Electricals Ltd, well-known for its innovative and quality products in the Indian home appliance sector, released its Q4FY24 financial results, which have sent waves across the market.
The company has experienced a significant drop in profits against what most people had anticipated, thereby leaving analysts and investors wondering why this happened.
From the weakness in appliances and general trade to the LED price erosion, let’s analyse the details that left investors feeling a little shocked.
About Bajaj Electricals
Bajaj Electricals Limited, a trusted name for over 85 years, is a prominent Indian company within the Bajaj Group. They are experts in the field of consumer appliances and lighting solutions, providing an extensive selection of products in diverse categories.
Bajaj Electricals was established in 1938 and built up its reputation based on reliability and innovation. They persist in advancing contemporary appliances and lighting solutions, utilising cutting-edge technology.
From kitchen appliances and fans to high-quality cookware and lighting choices, Bajaj Electricals offers different options. They have Morphy Richards as well as Nirlep in their brand portfolio, which signifies that they have made good quality products available to customers.
To ensure that their products reach the farthest corners of India, there are 18 branch offices, over 660 distributors and almost two lakhs of retail outlets that assist the company with distribution. Their extensive network of over 620 consumer care centres further strengthens its customer service.
As of March 2024, the shareholding pattern of the company is as follows:
| Shareholders | Holding |
| Promoters | 62.80% |
| FIIs | 10.18% |
| DIIs | 12.61% |
| Public | 14.41% |
Source: Screener
Also read: Navigating the vibrant landscape of the Indian consumer market
Bajaj Electricals Q4 results
Bajaj Electricals declared their Q4FY24 results on May 14 2024. Here is a quick summary:
- Net profit: During the March quarter of 2024, Bajaj Electricals Ltd. made a net profit of ₹29.31 crores, which was 43.47% less than that reported in Q4FY23 at ₹51.85 crores.
- Revenue: The company’s consolidated revenue declined from ₹1,291.97 crores to ₹1,188.08 crores year over year(YoY).
- Quarterly comparison: Revenue decreased by 3.27%, while profit reduced by 21.55% over the previous quarter.
- Expenses: Total expenses were lower at ₹1,186.09 crores in Q4, compared to ₹1,231.69 crores in the same quarter the previous year.
- Sector performance: Appliances and general trade impacted total revenues as they witnessed negative growth prospects. Fan segment expansion and ‘The Morphy Richards’ brand was not enough to offset falling sales of appliances.
LED price erosion and a higher base effect in professional lighting caused a decline in lighting solutions segment revenues.
- Annual figures:
- For FY24 ended on March 31, 2024, net profit had fallen to ₹131.08 crores as compared with the previous fiscal year’s figure of ₹216.19 crores.
- The total revenue for FY24 was at ₹4,641.27 crores, down from that made in FY23 at ₹4,889.24 crores.
QoQ performance
Here is a quick comparison of the quarter-on-quarter performance:
| Income Statement (in ₹ crores) | Q4FY24 | Q3FY24 | QoQ change |
| Revenue from Operations | 1,188.08 | 1,228.24 | -3.27% |
| Total Expenses | 1,186.09 | 1,220.49 | -2.82% |
| Profit Before Tax | 24.45 | 50.48 | -51.56% |
| Net Profit | 29.31 | 37.36 | -21.55% |
Source: Bajaj Electricals Q4FY24 Financial Results
YoY performance
| Income Statement (in ₹ crores) | FY24 | FY23 | YoY change |
| Revenue from Operations | 4,641.27 | 4,889.24 | -5.07% |
| Total Expenses | 4,554.64 | 4,631.89 | -1.67% |
| Profit Before Tax | 173.10 | 302.39 | -42.76% |
| Net Profit | 131.08 | 216.19 | -39.37% |
Source: Bajaj Electricals Q4FY24 Financial Results
Must read: Breaking down DLF quarterly results: Key Q4 insights!
Bajaj Electricals’ competitors
Here are some of the market competitors of Bajaj Electricals:
| Name | P/E | ROE % | D/E | ROCE % |
| Bajaj Electricals Ltd | 80.85 | 7.99 | 0.15 | 12.72 |
| Whirlpool of India Ltd | 99.15 | 6.37 | 0.01 | 8.43 |
| TTK Prestige Ltd | 44.06 | 13.78 | 0.08 | 18.14 |
| Eureka Forbes Ltd | 95.95 | 0.69 | 0.02 | 1.91 |
Source: Screener (as of May 20, 2024)
Bajaj Electricals shares news
As of May 18, 2024, Bajaj Electricals shares traded at ₹951.60.
If we look at the Bajaj Electricals share price history, the long-term performance has been quite exceptional.
The Bajaj Electricals share price increased by 77.46% in the past five years as of May 18, 2024. The one-year return, however, was negative at 20.79%.
Source: Google Finance
Considering Bajaj Electricals’ share price target – analysts sentiment on the company is mixed as of May 16, 2024.
Out of 15 analysts covering the stock,
- 3 have given strong buy ratings,
- 6 have given buy ratings,
- 3 have given sell ratings, and
- 3 have given a hold rating.
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Bottomline
Bajaj Electricals’ Q4 results have presented a mixed bag of outcomes, and the market has reacted accordingly. Investors were shocked by the sharp fall in profits and revenues, especially in the appliances and general trade segments, as well as the problems facing LED lights and professional lighting systems.
Despite this setback, Bajaj Electricals remains a venerable and innovative player in the Indian home appliance market, with a broad product range and an extensive distribution network.
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