BENGALURU: Bajaj Electricals posted a 56% fall in its second-quarter revenue on Monday, harm by pricing pressures as a consequence of stiff competitors and muted demand brought on by a delayed festive interval.
Its client merchandise enterprise, which incorporates home equipment like grinders and microwaves and constitutes greater than three-fourths of the entire income, contracted by 2.9% year-on-year whereas its lighting enterprise fell 7.4%.
Chairman Shekhar Bajaj, in an announcement, blamed weak client demand and pricing constraints for the autumn within the income in each companies.
The kitchen home equipment trade is witnessing heightened aggressive strain with the entry of fast-moving electrical items gamers with aggressive value factors, forcing conventional gamers to resort to heavy reductions.
Margins within the client merchandise unit have been “beneath strain as a consequence of value discounting in a weak surroundings”, the corporate stated in its earnings presentation.
Bajaj Electricals’ consolidated web revenue fell to 272.8 million rupees ($3.28 million) within the July-September quarter, from 620 million rupees a yr earlier.
The festive season, when most Indians splurge, together with on digital objects, was additionally delayed by a month to October this yr, hurting gross sales in a number of consumer-facing corporations.
In consequence, the Mumbai-based firm’s income from operations fell practically 4% to 11.12 billion rupees.
Bajaj Electricals shares dropped as a lot as 4.6% after the outcomes, however recovered to shut up 0.5%.
Its client merchandise enterprise, which incorporates home equipment like grinders and microwaves and constitutes greater than three-fourths of the entire income, contracted by 2.9% year-on-year whereas its lighting enterprise fell 7.4%.
Chairman Shekhar Bajaj, in an announcement, blamed weak client demand and pricing constraints for the autumn within the income in each companies.
The kitchen home equipment trade is witnessing heightened aggressive strain with the entry of fast-moving electrical items gamers with aggressive value factors, forcing conventional gamers to resort to heavy reductions.
Margins within the client merchandise unit have been “beneath strain as a consequence of value discounting in a weak surroundings”, the corporate stated in its earnings presentation.
Bajaj Electricals’ consolidated web revenue fell to 272.8 million rupees ($3.28 million) within the July-September quarter, from 620 million rupees a yr earlier.
The festive season, when most Indians splurge, together with on digital objects, was additionally delayed by a month to October this yr, hurting gross sales in a number of consumer-facing corporations.
In consequence, the Mumbai-based firm’s income from operations fell practically 4% to 11.12 billion rupees.
Bajaj Electricals shares dropped as a lot as 4.6% after the outcomes, however recovered to shut up 0.5%.
