Bajaj Electricals (500031) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 marked a financial turnaround, with turnover of Rs. 650 crore, 29% growth and operating profit of Rs. 22.6 crore, versus Rs. 5 crore in FY 2003-04.

• Growth was supported by stronger distribution, new products, sourcing and manufacturing strategies; the Ranjangaon unit became profitable and market share improved across business units.

• The stated ambition was to reach Rs. 1,001 crore turnover within the next couple of years.

Financial highlights

• Sales and other income reached Rs. 651.73 crore, up 24.85% YoY; net sales were Rs. 647.89 crore, up 28.2% from Rs. 505.07 crore.

• PBT was Rs. 21.79 crore, including Rs. 2.37 crore profit on land development rights; prior-year PBT of Rs. 16.72 crore included Rs. 11.70 crore from land rights sales.

• PAT was Rs. 13.84 crore versus Rs. 11.36 crore; after prior-period expenses, profit for the year was Rs. 13.66 crore versus Rs. 10.31 crore.

• Gross profit was Rs. 28.09 crore versus Rs. 23.85 crore; interest expense declined to Rs. 16.38 crore from Rs. 18.65 crore.

• Equity dividend recommended at 30% (Rs. 3 per share), versus 10% last year; 10% preference dividend was paid as interim and recommended as final.

Outlook and guidance

• FY 2005-06 outlook was described as positive, with confidence in consumer-facing businesses and infrastructure-linked Luminaires and Engineering & Projects.

• Highmast and pole manufacturing capacity at Ranjangaon was being expanded, with commissioning expected by September 2005.

• The stated medium-term ambition was Rs. 1,001 crore turnover within the next couple of years.