Bajaj Electricals - Q1FY14 Results - Nirmal Bang Institutional

- Reported result below than market expectation

- Company reported a jump in net revenue by 17.7% YoY to Rs. 781.6 crs and declined by 29.7% QoQ.

- EBITDA was down by 41.5% YoY to Rs. 20.2 crs and up by 53.1% QoQ. EBIDTA margin was down by 260bps YoY to 2.6% in Q1FY14 as against 5.2% in Q1FY13 due to poor operating performance across segments. The E&P business was up by 53.6% YOY however, the segment reported negative EBIT margin of 13.7% in Q1FY14 as against negative margin of 5.7% in Q1FY13 resulted into the decline in overall EBITDA margin for the company.

- The company reported a PAT of Rs. 0.7 crs in Q1FY14 down by 94.5% YoY and flat QoQ. The jump in tax rate and depreciation cost plus decline in Other income resulted into the low profitability of the company.

- Stock is currently trading at expensive valuation of 43.2x on trailing basis.

Source : Equity Bulls

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