Bajaj Electricals (500031) Q4 99/00 earnings summary

Executive summary

• FY ended Mar. 31, 2000 income from sales and other income rose marginally to Rs. 348.69 crore from Rs. 338.17 crore, while operating gross profit fell to Rs. 7.33 crore from Rs. 11.74 crore amid weak demand, underutilised capacity and high interest costs.

• Reported PAT was Rs. 126.05 lacs versus Rs. 534.73 lacs; the VRS accounting change deferred Rs. 465.37 lacs of compensation, and auditors said charging it all in-year would have produced a Rs. 339.32 lac loss.

Financial highlights

• Sales and other income reached Rs. 34,869.41 lacs, compared with Rs. 33,817.32 lacs in FY 1998-99.

• Profit before tax and provisions was Rs. 155.35 lacs versus Rs. 867.71 lacs; PAT was Rs. 126.05 lacs versus Rs. 534.73 lacs.

• EPS was Rs. 0.39; equity dividend recommended at 15%, down from 30% plus a 5% commemorative dividend in the prior year.

• 11% cumulative redeemable preference-share dividend of Rs. 110 lacs was paid as interim dividend and recommended as final dividend.

Outlook and guidance

• Consumer Durables turnover was expected to improve with new products and upgraded fan and appliance ranges.

• Chakan performance was expected to improve further in FY 2000-01 as manufacturing scaled up.

• Ranjangaon Highmast and galvanizing project was expected to become operational by Sept. 2000; full capacity at Hind Lamps’ Kosi plant was expected by Sept. 2000.

• Bajaj Ventures expected a faster turnaround following debt reduction and operational reorganisation; its outlook for the current year was described as better.