Construction Industry News
Shares of Bajaj Electricals hit a two-month high of Rs 1,329.75, up 6 percent on Friday's BSE in intraday trading, in an otherwise weak market. Shares of the home appliance companies are up 26 percent in the past six trading days, after the company said it will review its existing business structure due to the nature and potential opportunities of each of its business segments.
The stock was trading at its highest level since October 4, 2021. It had hit a 52-week high of Rs 1,588.55 on September 17, 2021. At 1:34 p.m., Bajaj Electricals was trading 4 percent higher at Rs 1,307, as compared to a percent drop in the S&P BSE Sensex.
"Given the diverse nature and potential opportunities of each of the business segments and the need for a targeted approach to capitalize on these opportunities, the company's board of directors has determined that the company should conduct a comprehensive review of its existing corporate structure," that Bajaj Electricals had said in a press release on December 9, 2021.
The company is currently engaged in consumer products (including appliances, fans and consumer lighting products), and the engineering procurement and construction segment (including energy transmission and power distribution and lighting projects).
The evaluation includes an evaluation of the full range of options and alternatives, including unbundling, granting and strategic partnerships between different options.
Management said this will enable them to create independent, leading and competitive entities - each with a sharp organizational focus, appropriate capital allocation and required flexibility to drive long-term value creation for customers, employees and investors.
In the September quarter, the consumer products company delivered sales growth and maintained earnings before interest tax (EBIT) margins for the prior year quarter, despite the significant impact of commodity price increases. The EPC segment delivered an EBIT loss, but continues to focus on project execution and cash flow remains positive, management said.
On October 1, 2021, the company's order book was Rs 758 crore, consisting of Rs 445 crore for transmission line towers, Rs 77 crore for power distribution and Rs 236 crore for lighting projects.
