Bajaj Electricals Ltd has declared its results for the second quarter ending 30th Sept 2010, where the net sales/income from operations has increased by 16 % at Rs. 587 Crore as against Rs. 505 Crore in the second quarter of the previous year.
The Profit before Tax has decreased by 19% at Rs. 36.1 Crore for the second quarter of 2010-11 as against Rs. 44.4 crore in the second quarter of the previous year. The net profit for the period has de-grown by 20% to Rs. 23.4 crore from Rs. 29.2 crore in the corresponding period of the previous year. During the first half of the current year (2010-11) net sales/income from operations is higher by 24 % at Rs. 1070 Crore as against Rs. 863 Crore in the first half of the previous year.
The Profit before Tax has grown by 0.8 % to Rs. 70.1 crore from Rs. 69.6 crore and the net profit for the period has grown by 0.7 % to Rs. 45.8 crore from Rs. 45.5 crore over the corresponding period of the previous year. Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals Limited, said ?The Quarter witnessed strong Revenue growth of 16 % despite severe commodity price increases compared to last year same period. Commodity prices however will continue to remain under pressure in the 3rd quarter while it will ease in the 4th quarter.? R. Ramakrishnan, Executive Director, Bajaj Electricals Limited said the half year growth of 37.5% in consumer durables and 24.7% in lighting is a ?strong? performance.
?This quarter last year had seen a significant margin improvement of 3.74 % due to extremely low commodity prices in terms of copper, aluminium and zinc. However in this quarter, the current year has seen very severe cost pressures on the same commodities.
?This has significantly pushed up product costs and thereby impacted operating margins adversely by 2.64 %. However the CAGR in operating margins is healthy at 38%,? Ramakrishnan said.
?We expect the commodity situation to start easing in the 2nd half of the financial year and the full benefits will be available in the 4th quarter numbers,? he added.