Bajaj Electricals (500031) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue from operations reached INR 1,290 crores, up 5% year-over-year, driven by strong festive demand and premiumization in Consumer Products, while Lighting Solutions declined 7.5% due to price erosion.

• Consumer Products segment grew 8.5% year-over-year, supported by robust sales in appliances and Morphy Richards, crossing INR 1,000 crore revenue after two years.

• Lighting Solutions revenue contracted by 7.5%, with volume growth in focus markets but overall contraction in both B2C and B2B segments.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024, were approved by the board on February 4, 2025.

• Board ratified minimum remuneration for the former MD & CEO for FY 2024-25, pending shareholder approval.

Financial highlights

• Revenue from operations increased 5% year-over-year to INR 1,290 crores; gross margin improved to 31.2% (up 2.0% YoY), mainly due to price hikes.

• Adjusted profit before tax rose 21% year-over-year to INR 45 crores, excluding prior year one-time warranty and tax items; PAT for continuing operations was INR 33 crores.

• Generated INR 83 crores positive cash flow from operations in Q3 and INR 260 crores for 9M FY25; cash & cash equivalents and surplus investments stood at INR 423 crores as of Dec'24.

• Standalone net profit for Q3 FY25: INR 33.36 crores, compared to INR 37.36 crores in Q3 FY24 (restated); EPS for Q3 FY25: INR 2.89 (basic and diluted).

• Net worth stood at INR 1,497 crores as of Dec'24.

Outlook and guidance

• Management remains cautiously optimistic for Q4, expecting seasonal products to perform well and trade channels, especially General Trade, to show revival.

• Targeting 7% EBITDA margin by FY27, with internal ambitions for higher margins; focus remains on driving growth in Consumer Products and improving margins in Lighting Solutions.

• CapEx guidance maintained at INR 100-150 crores for the next year.

• Brand investments to remain elevated to regain market share.

• Several new products launched in the last two years, with most warranty claims now insured.