Bajaj Electricals shares fall 8% after weak consumer products performance drags Q4 results

Shares of Bajaj Electricals

Ltd. tumbled as much as 8% on Monday, May 18, after the company reported a weak fourth-quarter performance, largely impacted by losses in its consumer products business and exceptional impairment charges.

The company posted a quarterly loss due to exceptional provisions amounting to ₹55.8 crore.

This included an impairment charge of ₹26.4 crore related to goodwill of Nirlep and another ₹29 crore towards moulds and dies under property, plant and equipment (PPE).

Employee expenses as a percentage of sales stood at 7.6% compared to 7.5% in the year-ago quarter, while other expenses rose sharply to 18.3% of sales from 16.2% last year.

The consumer products segment remained under pressure during the quarter. Revenue from the segment declined 7% year-on-year to ₹926 crore from ₹994 crore.

The segment also slipped into a PBIT loss compared to a profit of ₹38.9 crore reported in the corresponding quarter last year.

In contrast, the lighting business delivered a stronger performance. Segment revenue rose 16% year-on-year to ₹314 crore from ₹274 crore, while PBIT margins improved 90 basis points to 8.7%.