Bajaj Electricals posted mixed set of numbers in its Q4 results. Its net profit jumped year-on-year (YoY) but the EBITDA margins halved YoY. Anuj Poddar, executive director of Bajaj Electricals discussed the Q4 numbers.

“It is a fairly good performance in a tough environment out there. We have seen growth on all fronts. Our total revenues for this quarter have grown at about 10 percent from Rs 1,600 crore last year this quarter to about Rs 1,770 crore in Q4 of this year. Our consumer segment has grown fairly well, it has grown 15 percent from about Rs 640 crore to Rs 740 crore in Q4. The EPC segment has grown slightly slower at 7 percent,” he said.

“In terms of improvement, it is a tough market and we have grown ahead of market. If I contextualise a growth of 15 percent in consumer, that is way ahead of the market growth that I see at this point of time. We hope to continue that trend in the coming quarters also,” he added.

“In terms of the margins, our margins in consumer segment have grown from about 5.8 percent the same quarter last year to 6.2 percent and on a full year basis from about 4.8 percent last year to 6.6 percent now. Our guidance on margins, on consumer has always been that we aim to grow our margin by 1 percentage points every year, and we have beaten that guidance. So I would see that as a fairly healthy performance in a tough market place. We expect to continue to grow our consumer business ahead of industry and market and continue to expand the margins,” said Poddar.

“We have committed to beating industry and market growth on a consumer business and growing that at a healthy double digit. That we remain committed to,” added Poddar.

Key highlights

- Company has grown ahead of the market

- Margins have expanded for consumer durables in FY19

- Expect to grow consumer durables ahead of industry in FY20

- Expect durables margins to expand 100 bps in FY20

- Expect EPC margins to remain at similar level as FY19

- Durables business to grow in double digit in FY20

- EPC profitability to improve in FY20

- CFL business has become insignificant