Bajaj Electricals (500031) Q4 97/98 earnings summary

Executive summary

• FY1997-98 sales and other income reached Rs. 314.53 crore, up over 20% YoY; profit after tax was Rs. 7.08 crore, with higher sales driving profit growth.

• Operations expanded with the Chakan die-casting unit starting production in January 1998; a Rs. 3.00/share dividend was recommended.

Financial highlights

• Sales and other income rose to Rs. 314.53 crore from Rs. 261.93 crore; gross profit increased to Rs. 12.17 crore from Rs. 10.28 crore.

• Profit before tax and provisions was Rs. 10.51 crore versus Rs. 8.84 crore; profit after tax was Rs. 7.08 crore versus Rs. 5.10 crore.

• Dividend proposed at Rs. 3.00/share, totaling Rs. 129.64 lakh; prior-year dividend was also Rs. 3.00/share, totaling Rs. 86.43 lakh after the share count rose following a 1:2 bonus issue.

• Export earnings rose to Rs. 603.98 lakh from Rs. 394.77 lakh; foreign exchange used was Rs. 696.34 lakh.

Outlook and guidance

• Chakan production was expected to ramp up during FY1998-99 and contribute to profitability.

• A new manufacturing unit for High Mast and related products was under consideration as demand for High Mast products grew; project details were being developed.

• New and upgraded appliance and fan models were expected to support further turnover growth; broader rollout of the Bajaj UV Water Filter was planned.

• Energy-saving plant changes costing ~Rs. 1.95 lakh were expected to save ~Rs. 18 lakh annually from FY1998-99.