You are on page 1of 14

1QFY2014 Result Update | Cons.

Durables
August 8, 2013

Bajaj Electricals
E&P despair to be done post 3QFY2014
Y/E March (` cr) Net sales EBITDA EBITDA Margin (%) Adjusted PAT 1QFY14 783 20 2.6 1 4QFY13 1114 13 1.2 1 % chg (qoq) (29.7) 53.1 140bp 4.8 1QFY13 666 35 5.2 12 % chg (yoy) 17.6 (41.6) (262)bp (94.5)

BUY
CMP Target Price Investment Period
Stock Info Sector Market Cap (` cr) Net Debt Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Consumer durables 1,599 86.0 0.8 233/150 21,582 2 18,733 5,542 BJEL.BO BJE IN

`160 `184 12 Months

Source: Company, Angel Research

Bajaj Electricals Ltd (BEL) reported a poor set of numbers for 1QFY2014, mainly at the operating level. Its top-line reported a decent growth of 17.6% yoy to `783cr, in line with our expectation of `764cr. The EBITDA stood at `20cr which was lower by 41.6% yoy while margins at 2.6% were lower by 262bp yoy. Overall the EBIT margin of the company dipped by 265bp yoy mainly on account of cost overruns in delayed projects in the E&P segment which reported an EBIT loss of `26cr as compared to `7cr in 1QFY2013. Net profit, on the back of sluggish operating performance, plunged by 94.5% yoy to `0.66cr. Increased ad spends and premium segment launches on an uptrend: BEL has elaborated its ad spends by almost 50% to `75cr in FY2014E (from `38cr in FY2013) celebrating its 75th year, thereby increasing its visibility substantially. This in result is expected to create consumer pull, thereby enhancing the top-line of the company. Moreover, following the success met in in induction cookers (sales rise from `60cr FY2011 to `150cr in FY2013), BEL has launched a few models in the premium ceiling fan segment and air fryers in FY2013 and is looking forward to enter water purification products segment. Outlook and valuation: Amidst a poor performance for the quarter, BEL is set to have a clean slate post 1HFY2014, ie after the recent correction in the stock price and the significant hit it took from the cost over-runs in the E&P segment due to delayed project closures. On the back of recent developments, we expect the topline and bottom-line to grow at a CAGR of 14.9% and 107.7% (due to low base) respectively over FY2013-15E. Currently, the stock is trading at a PE of 10.4x for FY2015E earnings. Despite improving operational performance of E&P segment, we have revised our estimates downwards and continue to maintain Buy rating on the stock with a revised target price of `184 based on target PE of 12x for FY2015E.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 66.1 4.5 17.6 11.9

Abs.(%) Sensex BEL

3m (5.8)

1yr 8.9

3yr 3.2 (38.5)

(11.5) (11.2)

Key financials
Y/E March (` cr) Net Sales % chg Net Profit % chg EBITDA Margin (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2012 3,099 13.0 118 (20.0) 7.7 11.8 13.5 2.3 16.8 27.9 0.5 7.1 FY2013E 3,388 9.3 35 (69.9) 3.3 3.6 45.0 2.2 4.9 11.6 0.5 15.2 FY2014E 3,885 14.7 67 89.7 4.0 6.8 23.7 2.1 8.8 15.9 0.4 10.9 FY2015E 4,472 15.1 153 127.5 5.8 15.4 10.4 1.8 17.3 24.7 0.4 6.5

Twinkle Gosar
+91 22 3935 7800 Ext: 6848 Gosar.twinkle@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 7, 2013

Please refer to important disclosures at the end of this report

Bajaj Electricals | 1QFY2014 Result Update

Exhibit 1: 1QFY2014 performance highlights


Y/E March (` cr) Total operating income Net raw material (% of Sales) Employee cost (% of Sales) Other Expenses (% of Sales) Total expenditure EBITDA EBITDA Margin (%) Interest Depreciation Other income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Tax (% of PBT) Reported PAT Adjusted PAT PATM (%)
Source: Company, Angel Research 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY2013 FY2012 % chg

783
622

1114
915

(29.7)
(32.0) 1.0 (31.0) (30.6)

666
515

17.6
20.9 14.3 23.5 20.9

3,388
2,594

3,099
2,295

9.3
13.0 16.4 21.8 14.5

79.4
40

82.1
40

77.3
35

76.6
163

118.6
140

5.1
101

3.6
146

5.3
82

4.8
520

81.1
427

12.9 763 20
2.6

13.1
1101

12.3
632

15.3
3,277

133.3
2,862

13
1.2

53.1
140bp

35
5.2

(41.6)
(262)bp

111
3.3

237
7.7

(53.3)
(439)bp

16
4

16
4

1.8
(5.6)

16
3

(89.0)
25.2

69
14

63
13

9.4
15.4

2
2

8
1

(76.7)
68.6

3
18

(42.2)
(90.6)

42
69

14
176

189.8
(60.8)

0
2

0
1

0.0
18

15.7
85

0.0
176

0.2
1

0.1
0 171.8 4.8

2.7
6.3 (83.1) (94.5)

2.5
17.8

5.7
58.1 (69.4) (56.6)

61.6
1

38.2
1

34.2
12

21.0
51

33.0
118

1 0.1

1 0.1

4.8

12 1.8

(94.5)

35 1.0

118 (536.8)

(69.9)

Revenue in-line, profits below expectation


For 1QFY2014, BEL reported a poor set of numbers. The top-line reported a decent growth of 17.6% yoy to `783cr, in line with our expectation of `764cr. The EBITDA stood at `20cr which was lower by 41.6% yoy while margins at 2.6% were lower by 262bp owing to closure of delayed E&P projects having cost over-runs. The Net profit, on back of a sluggish operating performance, plunged by 94.5% yoy to `0.66cr as compared to our estimate of `21cr.

Exhibit 2: Net sales growth on uptrend


1,200 1,000 800 12.5 19.2 15.1 8.2 22.4 10.0 4.7 5.1 17.6 25 20 15

Exhibit 3: Declining E&P losses to reverse EBITDA margin trend


100 90 80 70 60 50 40 30 20 10 0 7.5 5.6 8.2 8.1 5.2 3.5 4.1 2.6 1.2 9 8 7 6 4 3 2 1 0 5

( ` cr)

( ` cr)

400

10

1,060

1,114

31

53

65

86

35

26

36

783

13

544

701

794

666

734

873

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Revenue (LHS)

Revenue growth yoy (RHS)

EBITDA (LHS)

EBITDA Margin (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

August 8, 2013

1QFY14

20

200

(%)

600

(%)

Bajaj Electricals | 1QFY2014 Result Update

Consumer durables and Lighting outperform; E&P disappoints


Revenue from the consumer durables segment grew by 11.8% yoy and came in at `437cr (55.7% contribution to total revenue). The EBIT for the segment came in at `40cr, 22.9% higher yoy, owing to price hikes undertaken in Jun13. The segments EBIT margin for the quarter expanded by 83bp yoy to 9.2%. The Lightings segment grew marginally by 3.3% yoy to `157cr and contributed 20.1% to the total revenue for the quarter. The flat growth was on account of degrowth in the luminous segment by 1% which partially offset 6.4% growth in the lighting segment. The EBIT for the segment rose by 4.2% yoy to `8cr and margins expanded by a mere 4bp yoy to 4.9%.

Exhibit 4: Segment-wise performance


Y/E Mar (` cr) Total Revenue A) Lighting B) Cons Durables C) E&P D) Others Total EBIT Margin (%) A) Lighting B) Cons Durables C) E&P D) Others 4.9 9.2 (13.7) (45.0) 7.9 8.0 (17.8) (0.0) 4.8 8.4 (5.7) (64.7) 157 437 189 0 783 285 544 285 0 1,114 152 390 123 0 666 (44.7) (19.7) (33.6) (9.1) (29.7) (299) 119 409 (4,498) 3.3 11.8 53.6 17.6 17.6 4 83 (794) 1,971 1QFY14 4QFY13 1QFY13 % chg (qoq) % chg (yoy)

(bp change)

Source: Company, Angel Research

The Engineering & Projects segments revenue posted a robust growth of 53.6% yoy to `189cr, contributing 24.2% to the total revenue. However on the EBIT front, owing to closure of seven old and delayed project sites in 1QFY2014, the segment reported a loss of `26cr vis--vis EBIT loss of `7cr in the same quarter previous year. The pinch from the E&P segment is expected to continue for the next two quarters post which BEL will be done with its old delayed sites.

Exhibit 5: Order Book composition


700 600 500 465 618 612 536

Exhibit 6: Execution status and reducing EBIT losses


1,200 1,000 800 890 960 1,024 920 51 40 453 27 7 123 0 1QFY14 1QFY13 133 2QFY13 147 3QFY13 285 4QFY13 189 0 1QFY14 E&P EBIT Loss Total Orders Orders executed 26 60 50 40 30 20 10

( ` cr)

( ` cr)

300 200 100 0

257 136 60

262

292

600 400

75

80

43 4QFY13 HMST

92

200

1QFY13

2QFY13 TLT

3QFY13 Special Projects

Source: Company, Angel Research

Source: Company, Angel Research

August 8, 2013

( ` cr)

400

350

369

Bajaj Electricals | 1QFY2014 Result Update

Investment Rationale
Increased ad spends and premium segment launches to drive growth
BEL is set to celebrate its 75th year in July by elaborating its ad spends and new marketing schemes. The ad spend is to rise by almost 50% to `75cr (from `38cr in FY2013) in order to increase its visibility. The company has achieved decent growth with limited advertisements till now, hence, with this increment, it is expected to create consumer pull, thereby enhancing the top-line. The product launch of induction cooker last year has been successful with sales growing from `60cr in FY2011 to `150cr in FY2013. In addition, BEL has launched a few ceiling fan models in the premium segment which are doing well as of now. The Management expects these new launches to capture significant market share in the next 6-8 months. BEL has also introduced air fryers and is looking forward to enter the water purification products segment.

E&P segment to be on uptrend from FY2014


The E&P division contributed ~25-30% over FY2010-12 to the total revenue of the company. However, the EBIT margin for the segment has been contracting significantly since FY2010 from 10.7% to 3.3% in FY2012 on account of delayed execution of projects and cost overruns. Hence, the company has made the provision for the same in order to take a conservative stand. Moreover, the company has become very selective in order intake by focusing more on profitability (with double digit operating margins) rather than revenue growth. On account of this, we expect the segment to register an EBIT loss of `65cr for FY2014E (`124cr in FY2013) and move gradually to EBIT profit of `24cr in FY2015E.

Exhibit 7: Margin trend reversal for E&P segment


900 800 700 600 500 400 300 200 100 0 737 FY2010 831 FY2011 832 FY2012 E&P Revenue
Source: Company, Angel Research

10.7

8.9

3.3 3.3

15 10 5 (9.1)

(` cr)

(5) (10)

(18.1) 688 FY2013 709 FY2014E 731 FY2015E

(15) (20)

EBIT Margin

Capital employed for the E&P segment has reduced from `573cr in 3QFY2013E to `489cr in 1QFY2014. The improvement is owing to receipt of advances from new orders and provisions write off for FY2013E. BEL expects to generate sales at 50% of capital employed in FY2014, thus providing better returns visibility.

August 8, 2013

(%)

Bajaj Electricals | 1QFY2014 Result Update

Exhibit 8: Order book trend


E&P order status Opening order book Order intake during year Executed orders Closing order book FY2011 750 832 832 750 FY2012 750 688 834 604 FY2013 604 960 688 876 FY2014E 876 920 709 1,087 FY2015E 1,087 901 731 1,256

Source: Company, Angel Research, * as on end of 2QFY2013.

Leveraging on strong brands and leading market position


BEL has a strong brand positioning and a well-spread distribution network. BEL has collaborated with known brands in each of its segments which have enabled it to grow at a robust pace over the years.

Exhibit 9: Strong brand association


Brand Trilux Lenze (Germany) Disano (Italy) Delta Controls (Canada) Rudd (US) Morphy Richards (UK) Nardi (Italy) Disney (USA) Media (China) Securiton (Switzerland) Source: Company Products Luminaries Street Lights Building management systems LED appliances appliances Fans Fans Fire alarm system

BEL has a leading position in consumer durables, mixer, heaters, luminaries, fans and induction cooker segment.

Exhibit 10: Leading market share


Segment Electrical Appliances Fans Lighting Luminaries Market size* `6000cr `2000cr `3600cr `2500cr Market share^ 15.0% 16.5% 17.0% -

Source: Company, *including organised and un-organised sector, ^in organised sector.

Recent alliance: The companys association with Glass Line Technology, Noida for in-house manufacturing of water heaters will substitute the current imports from China and hence boost the operating margins of the company. In the water heater segment, BEL is poised to excel in volumes since the technology used by BEL is far better and advanced than its other two peers in this segment. Technology will be a key driver of revenue for this segment.

August 8, 2013

Bajaj Electricals | 1QFY2014 Result Update

Penetration in rural market through exclusive Bajaj world stores


BEL plans to capitalize on growth in rural markets (dominated by unorganized players) by penetrating them through its outlets Bajaj World opened mainly through the franchise route displaying all the products of BEL. With growing disposable incomes, rural India is poised to witness growth in electrical appliances. BEL has already opened ~30 stores pan-India and targets 100 stores by the next year, of which ~50 stores are to be opened in the rural market. In addition, the company has plans to launch rural-specific brands to tap price sensitive segments under the Bajaj umbrella. Products under this economy brand will have different finish, designs and will be priced much lower than existing products of BEL. With expansion of the customer base, and fresh demand coming in, the top-line of the company assures decent growth visibility.

Exhibit 11: Segmental Contribution


Fans 18%

F Y2013
Electrical Appliances 36%

Luminories 11%

Lighting 15%

Engineering & Projects 20%

Source: Company

August 8, 2013

Bajaj Electricals | 1QFY2014 Result Update

Financials
Exhibit 12: Key Assumptions
Sales Growth (%) Electrical Appliances Fans Lighting Luminaries Engineering & Projects Total Sales Growth
Source: Company, Angel Research

FY2012 24.7 6.5 28.7 13.5 0.1 13.2

FY2013 FY2014E FY2015E CAGR (FY2013-15E) 28.5 12.2 21.5 2.3 (17.3) 9.0 12.6 27.8 (1.3) 43.2 3.1 14.7 17.8 17.8 17.8 17.8 3.0 15.1 15.2 22.7 7.8 29.9 3.0 14.9

Exhibit 13: Change in Estimates


Y/E March Net Sales (`cr) EBITDA Margin (%) EPS (`)
Source: Company, Angel Research

Earlier estimates FY2014E 3,885 5.4 11 4,472 7.2 20

Revised estimates 3,885 4.0 7 4,472 5.8 15

% change (0.0) (145)bp (38.4) 0.0 (143)bp (22.5)

FY2015E FY2014E

FY2015E FY2014E FY2015E

Net sales to post CAGR of 14.9% over FY2013-15E


The top-line of the company is expected to post a 14.9% CAGR over FY2013-15E to `4,472cr backed by strong performance from the consumer durables and revival in the E&P segment. We expect a 10.0% volume growth and a 5.0% value growth over FY2013-15E. To combat the escalating inflation levels and commodity prices, the company continues to increase the price of its products across segments.

Exhibit 14: Net sales growth to normalise


5,000 4,000 3,000 2,000
2,741 3,099 3,386 3,885 4,472

15.1 14.7 23.0 13.0 9.3

25 20 15 10 5 0

(` cr)

1,000 -

FY2011

FY2012 Net sales (LHS)

FY2013

FY2014E

FY2015E

Net sales growth (RHS)

Source: Company, Angel Research

EBITDA to grow at 52.7% CAGR over FY2013-15E


BELs EBITDA is expected to grow at 52.7% CAGR over FY2013-15E to `258cr in FY2015E. Moreover, EBITDA margins are believed to improve from 3.3% in FY2013 (dragged by E&P segment) to 5.8% in FY2015E. Recovery in E&P segment

August 8, 2013

(%)

Bajaj Electricals | 1QFY2014 Result Update

with fresh orders being bagged at healthy margins coupled with stability in currency is expected to aid the EBITDA margin rebound.

Exhibit 15: EBITDA margins to revive with E&P turnaround


300 250 200
(` cr)

9.1 7.7

10 5.8 9 8 7
(%) (%)

150 100 50 0 250 FY2011 237 FY2012 EBITDA (LHS)

4.0 3.3

6 5 4 3 2 1 0

111 FY2013

154 FY2014E

258 FY2015E

EBITDA margin (RHS)

Source: Company, Angel Research

Notable PAT growth due to robust top-line and improving EBITDA


On the back of strong top-line coupled with improvement in E&P divisions operating performance, we expect the bottom-line to post a CAGR of 107.3% over FY2013-15E to `152cr with margin improving from 1.0% in FY2013 to 3.4% in FY2015E.

Exhibit 16: PAT trend reversal


180 160 140 120
(` cr)

5.4

6 3.4 3.8 5 4 3 1.7 1.0 1 2

100 80 60 40 20 0 147 FY2011 118 FY2012 PAT (LHS)

35 FY2013

67 FY2014E

152 FY2015E

PAT margin (RHS)

Source: Company, Angel Research

August 8, 2013

Bajaj Electricals | 1QFY2014 Result Update

Outlook and valuation


Amidst poor performance for the quarter, BEL is set to have a clean slate post 1HFY2014 after the stock correction and significant hit from the cost over-runs in the E&P segments delayed projects closure. On the back of recent developments, we expect the top-line and bottom-line to grow at a CAGR of 14.9% and 107.7% (due to low base) respectively over FY2013-15E. Post the recent correction, the stock is available at an attractive PE of 10.4x for FY2015E earnings. Despite improving operational performance of E&P segment, we have revised our estimates downwards and continue to maintain our Buy rating on the stock with a revised target price of `184, based on target PE of 12x for FY2015E.

Exhibit 17: One year forward PE


400 350 300 250 200 150 100 50 0
Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 (` )

Price
Source: Company, Angel Research

3x

10x

17x

24x

Concerns
Currency fluctuation: BEL has a substantial part of its products imported from various associate foreign brands which pose a risk of currency fluctuations, thereby impacting profitability of the company. Change in LPG cap policy reform: Any increment in availability of subsidized LPG cylinder which is capped to 6 per family per annum will impact the volume of induction cookers. Inflation: Inflationary pressure would resist volume pick up. Delay in E&P project execution.

Exhibit 18: Relative Valuation


Company BEL* Surya Roshni* IFB Inds.^ Sales OPM (` cr) 3,388 3,041 908 3.3 8.0 5.3 PAT 51 32 EPS (`) 3.6 7.8 ROIC (%) 12.9 10.4 P/E P/BV (x) 3.9 5.5 (x) 2.2 0.4 0.5 EV/EBITDA (x) 15.2 4.0 3.2 EV/Sales (x) 0.5 0.3 0.2 (%) (` cr)

11.6 45.0

72 16.3

Source: Capital Line, *TTM ended Jun13 quarter, ^TTM ended Mar13 quarter.

August 8, 2013

Bajaj Electricals | 1QFY2014 Result Update

Profit and loss statement


Y/E March (` cr) Gross sales Less: Excise duty Net Sales Other operating income Total operating income % chg Net Raw Materials % chg Other Mfg costs % chg Personnel % chg Other % chg Total Expenditure EBITDA % chg EBITDA Margin Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of Net Sales) Recurring PBT % chg PBT (reported) Tax (% of PBT) PAT (reported) Extraordinary Expense/(Inc.) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) FY2011 2,765 24 2,741 2,741
23.0

FY2012 3,130 31 3,099 3,099


13.0

FY2013 3,413 25 3,388 3,388


9.3

FY2014E 3,913 29 3,885 3,885


14.7

FY2015E 4,505 33 4,472 4,472


15.1

2,036
26.2

2,295
12.7

2,594 13.0 97 3.7 163


16.4

3,076 18.6 80 (18.1) 187 14.7 388 (8.7) 3,731 154 38.8 4.0 16 138 43.1 3.5 67 29 0.8 71 161 100 33 33.0 67 67 89.7 1.7 6.8 6.8

3,512 14.2 67 (15.8) 210 12.4 425 9.4 4,214 258 68.0 5.8 17 241 74.7 5.4 57 44 1.0 184 158 228 75 33.0 153 153 127.5 3.4 15.4 15.4

78
28.0

94
20.1

114
28.9

140
22.8

263
15.1

340
29.1

426 25.2 3,277 111 (53.3) 3.3 14 96 (57.1) 2.8 69 42 1.2 27 (83.1) 69 18 25.8 51 16 35 (69.9) 1.0 3.6 3.6

2,491 250
5.4

2,862 237
(5.1)

9.1 11 239
4.9

7.7 13 225
(6.1)

8.7 37 16 0.6 203


6.1

7.2 63 14 0.5 162


(20.2)

219 75 34.2 144 (4) 147


22.1

176 58 33.0 118 0 118


(20.0)

5.4 14.9 14.9

3.8 11.8 11.8

August 8, 2013

10

Bajaj Electricals | 1QFY2014 Result Update

Balance sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Long term Provisions Net Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation less: impairment of assets Net Block Capital Work-in-Progress Goodwill Investments Long Term Loans and adv. Other non-current assets Current Assets Cash Loans & Advances Inventory Debtors Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 230 74 3 153 37 97 154 1,322 48 68 295 911 1,026 296 737 272 85 3 184 3 44 109 186 1,423 54 92 355 922 1,045 378 904 332 100 232 30 73 265 1,550 50 141 421 938 1,238 312 911 365 116 250 33 73 253 1,742 41 155 470 1,076 1,410 333 940 402 133 269 36 73 268 1,983 25 179 541 1,238 1,592 391 1,037 20 591 611 112 16 (2.0) 737 20 680 700 187 19 (1.9) 904 20 709 728 166 25 (7.9) 911 20 743 763 160 25 (7.9) 940 20 864 884 136 25 (7.9) 1,037 FY2011 FY2012 FY2013 FY2014E FY2015E

August 8, 2013

11

Bajaj Electricals | 1QFY2014 Result Update

Cash flow statement


Y/E March (` cr) Profit before tax Depreciation (Inc.)/ Dec. in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2011 219 11 (16) 199 (75) 337 (214) (97) 16 (296) 0 (25) (28) (18) (70) (29) 77 48 FY2012 176 13 (14) (77) (58) 39 (77) (19) 14 (82) 0 79 (28) (3) 48 5 48 54 FY2013 69 14 (42) 78 (18) 102 (136) 51 42 (43) 0 (22) (24) (16) (63) (4) 54 50 FY2014E 100 16 (29) (30) (33) 24 (21) (3) 29 5 0 (6) (32) (38) (9) 50 41 FY2015E 228 17 (44) (75) (75) 51 (52) (3) 44 (11) 0 (24) (32) (56) (16) 41 25

August 8, 2013

12

Bajaj Electricals | 1QFY2014 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) 0.0 0.1 6.5 0.1 0.4 3.6 0.1 0.8 1.4 0.1 0.6 2.1 0.1 0.3 4.3 4.3 34 111 126 46 11.4 38 109 121 46 10.2 49 109 121 28 10.6 47 109 121 27 11.1 47 109 121 30 32.4 36.7 24.1 24.8 27.9 16.8 10.6 11.6 4.9 14.7 15.9 8.8 23.2 24.7 17.3 8.7 0.7 4.2 24.1 21.5 0.0 24.2 7.2 0.7 3.9 18.7 22.6 0.1 18.2 2.8 0.7 4.1 8.6 30.9 0.1 6.0 3.5 0.7 4.5 10.7 27.9 0.1 8.7 5.4 0.7 4.6 16.5 27.9 0.1 15.6 14.9 14.9 15.9 2.8 61.3 11.8 11.8 13.1 2.8 70.2 3.6 3.6 5.0 2.8 73.1 6.8 6.8 8.3 2.8 76.6 15.4 15.4 17.1 2.8 88.7 10.8 10.1 2.6 1.7 0.6 6.5 2.2 13.5 12.2 2.3 1.7 0.5 7.1 1.9 45.0 32.0 2.2 1.5 0.5 15.2 1.8 23.7 19.2 2.1 2.0 0.4 10.9 1.8 10.4 9.4 1.8 2.0 0.4 6.5 1.6 FY2011 FY2012 FY2013 FY2014E FY2015E

August 8, 2013

13

Bajaj Electricals | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bajaj Electricals No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 8, 2013

14