Bajaj Electricals Limited

rs,

hich may affect the results contemplated by the forward looking statements could include, among others, future changes or developments in (i) the Group’s business, (ii) the Group’s regulatory and competit

2.8%

a scheme of demerger Performance Overview : Q2 FY’23 Core FMEG* Performance (Moderate degrowth of 2.8%; 3year CAGR: 11.2%) Industrial & Infra side (B2B) grew by 4% on YoY basis due to strong execution

11.2%

er Performance Overview : Q2 FY’23 Core FMEG* Performance (Moderate degrowth of 2.8%; 3year CAGR: 11.2%) Industrial & Infra side (B2B) grew by 4% on YoY basis due to strong execution & healthy order boo

4%

* Performance (Moderate degrowth of 2.8%; 3year CAGR: 11.2%) Industrial & Infra side (B2B) grew by 4% on YoY basis due to strong execution & healthy order book • Consumer side (B2C) de-grew by 4% beca

7.6%

de (B2C) de-grew by 4% because of high inflation resulting in lower offtake • • Operating Margin at 7.6% mainly due to higher cost inventory liquidation • Lighting Solutions: Focused BU created to consol

10%

d Portfolio b/w Trade and Alternate (60 : 40)** • CP segment : Sustained double digit growth in MT: 10% on YoY basis fuelled by premium/DMDC launches • Reach expansion : Trade (33 distributors, > 1,000

, MT

uelled by premium/DMDC launches • Reach expansion : Trade (33 distributors, > 1,000 retail outlets), MT (c.100 stores addition) • Lighting Solutions segment : Alternate channels increased revenue contri

14%

stores addition) • Lighting Solutions segment : Alternate channels increased revenue contribution (14% in Q2 FY’23 vs. 8% in LY) Cash Conversion & Balance Sheet (BS) Strength 14th consecutive quarter

8%

Lighting Solutions segment : Alternate channels increased revenue contribution (14% in Q2 FY’23 vs. 8% in LY) Cash Conversion & Balance Sheet (BS) Strength 14th consecutive quarter of positive Cash Fl

INR 210 crore

itive Cash Flow from Operations (CFO) • • Healthy BS with C&CE and surplus investments in excess of INR 210 crores EPC : Entering Building Phase • Degrowth of 40% in absence of sufficient order backlog • Orders

40%

E and surplus investments in excess of INR 210 crores EPC : Entering Building Phase • Degrowth of 40% in absence of sufficient order backlog • Orders worth INR 657 crs secured, order book enhanced to I

INR 657

: Entering Building Phase • Degrowth of 40% in absence of sufficient order backlog • Orders worth INR 657 crs secured, order book enhanced to INR 1,350+ cr * Core FMEG comprises of CP & Lighting Solutions

“• Moderate de-growth amidst high inflation, rural stress and weak consumer demand • On a 3-year CAGR basis, revenue grew at c.11% Lighting Solutions : Further consolidated its position to No.3 in H1 FY’23 (No.”

“3-Yr CAGR at c.18% for the quarter • • Robust growth across all home comfort appliances viz.”

“• c.7% de-growth on YoY basis due to de- stocking for adherence to BEE norms • 3-Yr CAGR stands at c.8% for quarter • Premium contribution sustained at c.20% backed by >50 new launches in last 10 quarters”

Gross Margin

1

Consumer Products Segment

1

EPC Segment

1

Appliances

1

Fans

1

Receivables

1

Adjustments for

1

Capex

1

Cash Flow from Financing Activities

1

Dividend

1

Gross Margin

852 377 102 200 19 8 65 5.2% 8 57 16 41 3.4% • Expansion of 220 bps mainly driven by margin expansion in Lighting Solutions segment Staff Cost • Sustained at optimum levels Other Expenses • Increase in product promotion (redemption of RBP loyalty program points) and service charges by INR 6 crs offset by cost optimisation program • Brand investment at 2.3% of Core FMEG (consumer side) sales Finance Cost • Includes INR c.4.5 crs of interest on vendor financing and EPC advances Segment Details Segment Revenue Particulars Consumer Products Lighting Solutions EPC Total Revenue Segment Results Particulars Consumer Products Lighting Solutions EPC Total* Q2 FY’23 (in Crores) Q2 FY’22 (in Crores) YoY Gr (in %) Q1 FY’23 (in Crores) 883 276 67 1,226 905 286 111 1,302 (2.4)% (3.7)% (39.4)% (5.9)% 855 274 100 1,229 Q2 FY’23 Q2FY’22 Q1 FY’23 EBIT (Cr) EBIT(%) EBIT (Cr) EBIT(%) EBIT (Cr) EBIT(%) 62 26 6 94 7.0% 9.4% 8.7% 7.7% 91 18 10.1% 6.3% (19) (17.3)% 99 7.6% 43 21 0 65 5.0% 7.8% 0.0% 5.2% *Incl

Consumer Products Segment

• Moderate de-growth amidst high inflation, rural stress and weak consumer demand • On a 3-year CAGR basis, revenue grew at c.11% Lighting Solutions : Further consolidated its position to No.3 in H1 FY’23 (No. 7 as on end FY’19 and No. 5 as on end FY’22) • Professional Lighting: Sustained MS gains in a de-growing industry (c.4% growth on both quarterly and half-yearly basis) • New orders > INR 155 crs secured during the quarter • Consumer Lighting: Restructuring in distribution resulted in a sequential de- growth of 4%

EPC Segment

• PD & PT on a combined basis continues to deliver positive operating profit Operational Highlights Category Growth (YoY): CP Segment Category Growth (YoY): CP Segment Appliances: 2.3% Fans: (7.0%) MR : (25.8%) Receivables* (net of channel finance) Receivables* (net of channel finance) Particulars Consumer Products (CP) Lighting Solutions Power Distribution (PD) Power Transmission (PT) Total Sep’22 (in Crs) Jun’22 (in Crs) Mar’22 (in Crs) 274 160 311 190 935 189 147 352 227 915 155 171 486 245 1,057 * Applicable to Consumer Products and Lighting Solutions segment Commentary

Appliances

3-Yr CAGR at c.18% for the quarter • • Robust growth across all home comfort appliances viz. water heaters , coolers and irons

Fans

• c.7% de-growth on YoY basis due to de- stocking for adherence to BEE norms • 3-Yr CAGR stands at c.8% for quarter • Premium contribution sustained at c.20% backed by >50 new launches in last 10 quarters

Receivables

• Reduction in receivables for PD & PT by INR 78 crs on sequential basis Cash Flow Summary: H1 FY’23 (INR Crs) Commentary Particulars Profit Before Tax