Bajaj Electricals Q1 Review - Raw Material Inflation, One Off Expenses Mar Earnings: Prabhudas Lilladher
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Prabhudas Lilladher Report
We cut our FY22/23 earnings of Bajaj Electricals Ltd.'s by 6.2% / 1.5% on soft Q1 given margin pressures on the back of-
unabated commodity inflation and
various one offs/ non comparable costs.
Consumer products margins were negatively impacted due to -
reallocation of costs from engineering, procurement and construction to consumer product,
increased advertising and promotion spends,
delay in transition of logistics arrangement with Mahindra Logistics Ltd. due to Covid-19
employee incentives and
voluntary retirement scheme in Hind lamps facility.
However, with demand trend fairly healthy Bajaj Electricals is confident of sustaining consumer product margins at a minimum of 9% in FY22.
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