Bajaj Electricals (500031) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 revenue reached Rs.848.21 crore, up over 30% YoY; PBT rose to Rs.46.99 crore from Rs.21.79 crore, supported by operating improvements and favorable market conditions.

• Strategic priority: profitable growth, with a FY 2006-07 sales target above Rs.1,001 crore under “Odyssey 1001.”

• April-May 2006 sales were Rs.115.46 crore versus Rs.78.22 crore YoY, a reported 48% increase.

Financial highlights

• Sales and other income were Rs.848.21 crore versus Rs.651.26 crore; net sales were Rs.843.69 crore versus Rs.647.89 crore.

• PBT was Rs.46.99 crore versus Rs.21.79 crore; profit after tax before prior-period adjustments was Rs.29.83 crore versus Rs.13.84 crore.

• Reported net profit after prior-period and earlier-year tax adjustments was Rs.28.21 crore versus Rs.13.66 crore; reported growth was 107%.

• Gross profit was Rs.53.33 crore versus Rs.28.09 crore; depreciation was Rs.6.38 crore versus Rs.5.99 crore.

• Non-recurring items included Rs.3.17 crore gain on discontinued-operation land rights and Rs.2.95 crore flood-related material damage, net of insurance.

Outlook and guidance

• Target sales above Rs.1,001 crore in FY 2006-07; management expected positive prospects and continued focus on profitable growth.

• Management cited consumer spending, branded-product demand, retail expansion, rural opportunities and infrastructure investment as growth drivers across consumer and industrial businesses.

• Ranjangaon expansion plant for highmasts and street furniture was commissioned in April 2006 to meet expected demand for highmasts, poles and transmission towers.