Bajaj Electricals will focus on the illumination business, as part of its EPC activities. This is also reflected in lower order book of the other two EPC segments – transmission line towers (TLT) and power distribution (PD).
The outstanding order book position for illumination stood at Rs.416 crore as of April 1, 2021. This was more than twice its level of Rs.197 crore, as of April 1, 2020. [See table.]
It may be mentioned that during FY19, Bajaj Electricals Ltd landed massive rural and urban electrification orders, valued at around Rs.6,000 crore, under the government-backed “Saubhagya” scheme. Earlier, it had won similar orders in Bihar.
As of April 1, 2021, the outstanding order book of the PD business was Rs.224 crore, coming down sharply from Rs.828 crore as of April 1, 2020. This fall could also be explained by improvement in receivables from the PD business.
For instance, receivables from the PD business in Uttar Pradesh were in the range of Rs.850 crore as of end-March 2020. This came down to around Rs.565 crore as of end-March 2021, the company said in the conference. Similarly, in Bihar, receivables from the PD business that stood at Rs.500-525 crore in March 2020 reduced to Rs.400 crore in March 2021. During FY21, therefore, around Rs.400 crore were collected from the EPC power distribution business.
The financial stress in the overall EPC business is coming largely from the PD segment, the company said. The company also feels that beyond Q2 (which ends on September 30, 2021), there should be no losses in the EPC business.
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Bullish on illumination
The company said that it will remain bullish on the illumination business and that the business has delivered growth in the last couple of quarters. The company feels that in the coming years, the illumination business should contribute to both the top-line and bottom-line. As of April 1, 2021, the illumination business had a share of 37 per cent in the overall outstanding EPC business order book.
The EPC illumination business mainly includes street lighting, stadium lighting and specialty high-mast lighting.
(Featured photograph sourced from https://illumination.bajajelectricals.com. The statistical table presented in this story has been compiled by T&D India based on various official releases issued by Electricals Ltd. Figures may not be accurate and should be used for broad guidance only.)
