Bajaj Electricals (500031) Q4 98/99 earnings summary

Executive summary

• FY99 income, including sales and other income, rose 8% to Rs 338.17 crore; gross profit before the VRS charge fell to Rs 11.74 crore from Rs 12.17 crore amid recessionary conditions.

• Profit after tax declined to Rs 5.35 crore from Rs 7.08 crore; recommended equity dividend increased to 35% (Rs 3.50/share), including a 5% Diamond Jubilee addition.

Financial highlights

• Sales turnover was Rs 335.53 crore; total income was Rs 338.17 crore, versus Rs 314.53 crore in FY98.

• Profit before provisions and extraordinary items was Rs 9.25 crore, versus Rs 10.51 crore; VRS compensation was Rs 56.97 lakh and depreciation was Rs 2.50 crore.

• Profit after tax was Rs 5.35 crore, versus Rs 7.08 crore; gross profit before provisions/extraordinary items was Rs 11.74 crore, versus Rs 12.17 crore.

• Lighting turnover rose ~10% to Rs 194.34 crore; Consumer Durables turnover rose ~10% to Rs 123.54 crore.

Outlook and guidance

• Ranjangaon galvanising plant for highmasts, lattice masts and related products was targeted to become operational by June 2000; estimated project cost Rs 39.75 crore.

• A 3 MW wind farm for captive electricity use was in an advanced setup stage; estimated cost, including land, Rs 12.50 crore.

• Planned consumer products included microwave ovens, room coolers and gas appliances, alongside technology upgrades to existing fans and appliances.

• Chakan production was expected to stabilise during FY00; Y2K remediation of material-impact areas was targeted by 31 Aug 1999 at an estimated cost of Rs 85 lakh.