Bajaj Electricals bets big on E&P biz, eyes Rs 2,750cr revenue

Posted By: Pti
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Mumbai, Jan 27 (PTI) The Shekhar Bajaj-led BajajElectricals today said it is eyeing a Rs 2,750-crore turnoverin the current fiscal as against Rs 2,250 crore in FY 10,though its margins are likely to be under pressure in the lastquarter (Q4 FY 11) due to rising commodity prices.

"Growth potential is high and we are on track toachieve a turnover of Rs 2,750 crore in FY 11 as against Rs2,250 crore in the last fiscal. However, with commodity pricesrising and likely to continue to rise in Q4 FY 11 as well, ourmargins could be under pressure," Bajaj Electricals Chairmanand Managing Director Shekhar Bajaj told PTI here.

Commodity prices have gone "haywire", he said, addingrates of copper, steel and aluminium had all risen in Q3 andprospects of any price decline in Q4 "does not look likely."

However, the company is confident about growth and iseyeing a Rs 1,000-crore revenue in Q4 FY 11, which will enableit to achieve the FY 11 turnover target, he said.

Bajaj Electricals clocked an 18.7 per cent increase inincome in Q3 FY 11 at Rs 689 crore as against Rs 580 crore inthe year-ago period. Net profit rose 19.1 per cent to Rs 40.6crore from Rs 34.1 crore in the year-ago period.

"Our profitability performance has been satisfactorydue to an increase in sales, tight management of interest costand effective management of product pricing and margins."

The company''s consumer durables and lighting segmentsgrew by 34 per cent and over 17 per cent, respectively, in Q3.

Engineering and products (E&P) business unit bouncedback with an EBITDA of 9.4 per cent as against a low 3 percent in Q2 and the firm is betting big on this business in Q4.

"We have an order-book of Rs 1,050 crore and will be focusingon aggressive growth in this segment in Q4," he said.

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