InvestorQ : What was the reason for Bajaj Electricals posting a loss in the Mar-20 quarter?
Rutuja Nigam made post

What was the reason for Bajaj Electricals posting a loss in the Mar-20 quarter?

Answer
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rhea Babu answered.
3 months ago


Bajaj Electricals reported net loss of Rs.81 lakhs in the Mar-20 quarter as against net profits of Rs.23 crore in the March quarter last year. The consumer products segment showed a marginal 0.5% growth to Rs.747 crore but the more industrially sensitive EPC segment fell 46% to Rs.554 crore. Sales for the fourth quarter fell by 27% to Rs.1301 crore.

Clearly, like in most cases, the Coronavirus outbreak impacted its operations in March, April and May of 2020 due to temporary suspension of manufacturing facilities, sales and more importantly the execution of EPC contracts. The real effect on the EPC business will only be visible in the June and the September quarter which could see more pressure.

Certain activities in non-containment zones have resumed operations although it is nowhere close to full capacity. As of now, the company is confident of an adequate financial cushion. Bajaj has been focusing more on ensuring cash flows from operations and in reducing debt to cut down on financial risk. Its order book position in excess of Rs.1700 crore is good.