Financial Capital

At Bajaj Electricals, our endeavour is to maintain prudent capital structure, healthy balance sheet and steady cash flow from operations with focus on creating value for all our stakeholders. We remain committed to invest in growth opportunities with a risk calibrated approach. To support growth endeavours, we seek to take appropriate measures to adjust our capital structure. We also diligently focus on the return on capital and dividend distribution to maximise shareholder value.

Material topic linkage

  • Resilient business model and long-term profitability

UN SDG linkage:

Our Consumer Products business has surpassed J 3,700 crore in revenue, while our Lighting Solutions business has experienced substantial profit growth. Additionally, our EPC business now stands operationally positive, completing a turnaround after losses in the previous three years. Our strategic approach of selectivity and order quality has ensured profitability at the project level for the EPC business. We remain resilient, optimistic and committed to delivering sustainable growth and profitability in the face of rising commodity prices and inflationary pressures.

Cash flow generation & deployment

(₹ in crores)

Managing Capital – Inputs

Lighting Solutions

W.e.f. 1st Jul’22, BEL’s segment reporting underwent changes wherein Lighting Solutions has been reported as one unified separate segment encompassing of both Professional lighting & Consumer lighting

Strong revenue generation of ₹ 5,429 crore

supported by all our businesses, where CP segment has grown by 13.5%, LS segment by 4.1% and EPC segment by 29.5% during FY’23

Strong EBIT generation of ₹ 352 crore

supported by all our business, where CP segment has grown by 9.2%, LS segment by 47.9% and EPC segment turning EBIT positive during FY’23.

Multiple financing initiatives

to improve working capital cycle across the value chain (Reverse factoring, Channel financing, Cooler financing & Warranty insurance)

Generated cashflow in operations of ₹ 450 crore

due to operating profits and release of working capital. The capital employed in the EPC segment has reduced by ₹ 330 crores, thereby providing a strong impetus to this cashflow from operations

Portfolio simplification in FY’23

  • Completed merger of Starlite Lighting Ltd
  • Initiated merger of Nirlep Appliances Pvt Ltd
  • Near to completion of Scheme of Demerger for EPC undertaking

Managing Capital – Outcomes

  • Strong surplus position of ₹ 411 crore achieved through focused efforts and actions.
  • Beefed up capital expenditure to the tune of ₹ 86 crore
  • Invested in digitisation and IT infrastructure to improve operational efficiencies. (Migrated to SAP S4 HANA system in FY’23)
  • Brand investment to the tune of ₹ 135 crore to support business growth
  • Simplified corporate structure
  • Proposed a dividend of ₹ 4 per share in line with the Dividend Distribution Policy
  • M-cap in excess of ₹ 12,000 crore as on March 31, 2023

Way forward

  • Maintaining flexible capital structure in line with the business needs to support growth opportunities
  • Making sound investments towards the intellectual capital with a strong focus on generating healthy return on investment
  • Continued focus on digitisation
  • Focusing on shareholders’ wealth maximisation

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