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Chairman Communique

Our PBIT grew sharply from ₹192 crore in 2019-20 to ₹305 crore. Our PAT swung from ₹(0.1) crore in 2019-20 to ₹184 crore, marking the strong turnaround in our performance.

Shekhar Bajaj

Chairman & Managing Director

Dear Shareholders,

It gives me immense pleasure to share with you, your Company’s performance for the year 2020-21.

Fiscal 2020-21 was a significant year for your Company in multiple ways. As I had shared with you last year, that year marked the beginning of a multi-year transformational journey to building the new Bajaj Electricals.

This involved a holistic reinvention of our business model, even as we dealt with multiple challenges, particularly the pressures on our cashflows and balance sheet. Just as we were starting to build momentum on this journey, the economy was laid low by the outbreak of COVID-19 in early 2020 which had the potential to derail our efforts.

However, I am glad to state that not only did we prove our resilience in dealing with the fallout of the pandemic, but also continued to strongly move forward on our transformational journey and delivered a remarkable turnaround on our performance at every level, making this one of the best years in the history of your Company. This vindicates the new vision and strategy adopted by us; but more importantly, it is a testimony to the execution excellence, agility and focus that form the core of the ethos of the new Bajaj Electricals.

During the year under review, we saw a decline in total revenues from operations to ₹ 4,573 crore from ₹ 4,977 crore in the previous fiscal year, primarily due to the impact of the andemic-induced lockdown in the first quarter as well as the calibration on our EPC Businesses. However, our PBIT grew sharply from ₹ 192 crore in 2019-20 to ₹ 305 crore. Our PAT swung from ₹ (0.1) crore in 2019-20 to ₹ 184 crore, marking a strong turnaround in our performance. During the year, your Company continued to generate strong cashflow from operations of H 660 crore. Total debt reduced sharply from ₹ 957 crore, as on 31st March, 2020 to ₹ 464 crore as on 31st March, 2021, thus further improving our debt-equity ratio to 0.3. This marks another milestone in our turnaround journey

Our Consumer Products segment delivered growth of 7.1% on a full-year basis, despite the loss of sales in the first quarter due to the lockdown.

The segmental PBIT grew from ₹ 208 crore in 2019-20 to ₹ 324 crore, making it the highest-ever PBIT for the Consumer Products business. This represented an improvement in PBIT margin from 6.8% in 2019-20 to 9.8% in this fiscal. The improved performance of this segment was driven by the launch of several products, focused actions to overcome pandemic-induced disruptions on the supply chain, strong brand push and active sales efforts across all channels.

In our EPC segment, rather than chasing the top-line, our focus has remained to better manage the execution of current projects on hand. We have managed to successfully close certain legacy projects in the Power Distribution business as well as continue to reduce our receivables. Our Power Transmission business commissioned 13 projects during the year which includes the commissioning of our first international project in Zambia. We have been strategically growing the share of our monopoles business with many pioneering projects. We aspire to stay focused on better capital management and selective bidding of projects that meet our financial parameters, while ensuring superior execution of new projects and efficient risk management.

Our Illumination business has demonstrated strong improvement in a challenging year due to a slowdown in infrastructural spends. We grew our market-share and executed several prestigious projects across airports, highways, smart cities, railways, stadiums, industries, etc. This has been enabled by the introduction of continually refreshed product offerings and a more focused go-to-market approach.

The core foundation for the new Bajaj Electricals lies in the Organisational Transformation that we have embarked upon. This comprises strengthening of our people, processes and systems as well as our overall organisational culture to drive superior performance on a more institutionalised basis.

As I shared last year, the core foundation for the new Bajaj Electricals lies in the Organisational Transformation that we have embarked upon. This comprises strengthening of our people, processes and systems as well as our overall organisational culture to drive superior performance in a more institutionalised basis. These initiatives are beginning to bear fruit. In March 2021, your Company was certified as Great Place To Work by Great Place To Work ® Institute India. We have also won several other accolades during the year in the areas of supply chain management, quality assurance, technology initiatives and investor relations. Additionally, we are embarking upon the implementation of a new ERP system with a planned go-live date of 1st April, 2022. I am confident that as the Organisational Transformation initiatives take root, your Company will derive its benefits for many more years to come.

We are also in the process of streamlining our corporate structure and interests across various entities. During the year, we completed the acquisition of the demerged business of Hind Lamps Limited. In April 2021, our Board approved a transaction to acquire control and dominant ownership of Starlite Lighting Limited and thereafter, sanctioned a planned merger of Starlite into Bajaj Electricals. These corporate actions are designed to address legacy issues and create a simpler, leaner and more efficient operating structure.

While we have been driving various business and organisational initiatives, we are conscious of the very difficult times posed by the COVID-19 pandemic, especially the second wave which has hit closer to home. We have lost a few valued team members and many of their loved ones. We express our heartfelt condolences to their families. As a responsible organisation, we have been taking several measures to support our people during tough times. We have undertaken a complimentary vaccination drive for all our people, their dependants and various associates.

I would like to acknowledge and thank all our employees and business associates for all their contributions and efforts in delivering superior performance. I would like to specially appreciate our Executive Director, Anuj Poddar, and our entire management team for being the drivers of this turnaround journey. I would also like to express my gratitude towards my colleagues on the Board for their support and guidance to the Company. And I remain grateful to you, our shareholders, for trusting us and being a part of the Bajaj Electricals family.

I hope and pray for the health and safety of each one of you and for all of us to emerge from this pandemic stronger, with an enthusiasm to learn from life lessons.

Yours sincerely

Shekhar Bajaj
Chairman & Managing Director