Bajaj Electricals Reports Negative Financial Performance in Q2 FY25

Bajaj Electricals, a midcap company in the consumer durables industry, recently announced its financial results for the quarter ending September 2024. The company has received a ‘Strong Sell’ call from MarketsMOJO, indicating a negative outlook for its stock.

According to the financials, Bajaj Electricals has seen a decline in its overall performance, with a score of -18 compared to -12 in the previous quarter. However, there are some positive aspects to the company’s performance, as seen in its inventory turnover ratio. The company has been able to sell its inventory at a faster rate, with a record high of 6.19 times in the last five half-yearly periods.

On the other hand, there are some concerning factors in the financials. The company’s profit before tax less other income (PBT) has fallen by 101.21% year on year, with a negative trend in the near term. Similarly, the profit after tax (PAT) has also declined by 57.5% year on year, with a negative trend in the near term. The company’s operating cash flow has also decreased each year in the last three years, indicating a decline in cash revenues from business operations.

Moreover, the non-operating income of Bajaj Electricals is 103.19% of its PBT, which suggests that the company’s income from non-business activities is high and not sustainable in the long run. The earnings per share (EPS) have also decreased to the lowest at Rs 1.12 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

In terms of liquidity, the company’s cash and cash equivalents have decreased to the lowest at Rs 36.20 crore in the last six half-yearly periods, indicating a deteriorating short-term liquidity situation. Additionally, the debt-equity ratio has reached its highest at 0.16 times in the last five half-yearly periods, suggesting that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Bajaj Electricals has reported a negative financial performance for the quarter ending September 2024. Investors should carefully consider these factors before making any investment decisions.