Consolidated net sales increased by ~12% YoY to ~|1490.1 crore (ahead of I-direct estimate of ~| 1300.6 crore) led by better-than-expected revenue growth in consumer Product and lighting revenues
The consumer product segment revenues increased by ~8.6% YoY to ~ |986.5 crore (Vs I-direct revenue estimate | 822.6 crore). The lighting division revenue grew marginally by ~1% YoY to | 305.4 crore (ahead of I-direct estimate of | 264.6 crore)
Company’s Engineering & Project (E&P) division revenues increased by ~60% YoY to | 198 crore, however lower than our estimate of ~| 213 crore mainly due to slow execution of orders
The gross margin remained flat on a YoY basis (down 385 bps QoQ) to 29.2%. EBITDA margin improved by 101 bps YoY (down 111 bps QoQ) to 5.7% (vs I-direct estimate: 6.9%) led by savings in operating expenses. The EBIT margin of lighting segment declined by ~256 bps YoY to 8.5%. However, EBIT margin of consumer products segment improved by ~290 bps YoY to 7.9%
PAT came in at | 51.85 crore up by ~34% YoY (however slightly lower than I-direct estimate of ~| 56 crore) tracking topline growth
ICICIdirect Research view on Bajaj Electricals Ltd Stock
View: We believe Bajaj Electricals reported strong revenue growth in Q4 led by the consumer products segment amid strong demand. We believe, improvement in consumer products segment EBIT margin is on the back of normalising advertisement expenses and better sales growth. However, we believe, the company's lighting segment has remained under pressure due to distribution restructuring. We await management commentary on future demand outlook and sustainable EBITDA margin going forward.
Impact: Neutral
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