Bajaj Electricals reported a sharp decline in its fiscal fourth quarter profit, which fell to Rs 29.31 crore, a 43.5% decrease from Rs 51.85 crore during the same period last year. The company’s revenue from operations also saw a downturn, posting Rs 1,188.08 crore, down 8% from Rs 1,291.97 crore in the fourth quarter of FY23. Earnings before interest, tax, depreciation, and amortization (EBITDA) dropped by 48% year-on-year to Rs 49 crore.
Despite the decline in profit, the company board has recommended a dividend of Rs 3 per share (150% of the face value of Rs 2 each) for the financial year ending March 31, 2024. The proposed dividend is subject to approval by shareholders at the forthcoming 85th Annual General Meeting (AGM) and will be credited or dispatched on or after August 10, 2024. The register of members and share transfer books will be closed from July 20, 2024, to August 6, 2024, for the purpose of the AGM and dividend payment.
In a regulatory filing, Bajaj Electricals also announced plans to seek shareholder approval at the AGM to borrow funds through the issuance of unsecured non-convertible debentures and/or commercial papers up to Rs 500 crore on a private placement basis in one or more tranches.
Additionally, the company has appointed Pooja Bajaj as a whole-time director with the title of ‘Executive Director’ for a five-year term starting May 14, 2024. Pooja Bajaj holds a Master’s in Management from the University of Leeds, England, and a Postgraduate Diploma in Human Resource Management from Osmania University, Hyderabad. She has been a board member of Bajaj Electricals since November 2018 and has undergone extensive training in the company’s strategic direction and consumer durable segment.
“Since joining the board, Pooja has been instrumental in learning about the company’s strategic direction and culture of excellence. She dedicated 2.5 years to immersive training in the consumer durable segment, gaining a comprehensive understanding of market dynamics, competitive landscapes, and financial nuances,” the company stated.
The recent financial performance reflects the challenges faced by Bajaj Electricals in the current economic environment. However, the company’s strategic initiatives, including the proposed fundraising and new leadership appointment, aim to bolster its long-term growth and market position.
