Linkage with UNSDG:
Cash and Cash Equivalents
Net Capital Expenditure
Return on Capital Employed
HOW WE MANAGE OUR FINANCIAL CAPITAL
India is one of the fastest growing markets despite the setback due to the COVID-19 pandemic. Even during the challenging period, the demand and consumption for Fast Moving Consumer Durables (FMCD) have continued to increase. Despite the pandemic, Bajaj Electricals has remained resilient and has continued its journey towards achieving substantial growth. The Company aims to manage its capital efficiently to optimise returns to its shareholders. The Company's capital structure is determined by management's assessment of the right balance of key aspects to suit its strategic and operational needs. The management considers the amount of capital in proportion to risk and manages the capital structure as per the evolving changes in the economic conditions and the risk characteristics of the underlying assets.
ENHANCING BALANCE SHEET STRENGTH
During the year under review, the Company continued with the overall focus of deleveraging its balance sheet by striking the optimum capital allocation across both the businesses. Through out the year, we focused on optimising our working capital, operating leverage and treasury activities.
Our operational KPIs are compared with internal and external benchmarks to achieve best production, higher productivity and yields. These initiatives provide better customer connect and reach, and higher realisations and result in cost optimisation to ensure positive cash flows from operations. The funds thereby generated were primarily deployed for debt and interest repayments. Allocations are also made towards strategic investments in subsidiaries and investments in capital assets including research and development. The surplus post the above deployment is then invested in short-term instruments from a liquidity aspect.
MANAGING CAPITAL – INPUTS
supported by the CP business, which has grown by 14% and a decline in the losses in the EPC business during FY 2021-22.
Generated strong cash flow in operations of
due to the risk calibrated approach taken for the EPC business. The capital employed in the EPC segment has reduced to the tune of H 400 crore, thereby providing a strong impetus to this cash flow from operations.
MANAGING CAPITAL – OUTCOMES:
Capex towards manufacturing plants, R&D initiatives and IT Infrastructure
Transitioning into a net debt-free Company after four decades
Undertaken several portfolio simplification initiatives
Highest short term credit rating upgrade from
Strong Long term credit rating upgrade from
supported by reduction in the debt and finance cost, and improvement in the profitability and liquidity ratios.
Proposed a dividend of
and also framed a dividend policy, which will act as an indicator towards the future dividend pay-out.
Net cash of
has also been achieved through focused efforts and actions.
INVESTOR ENGAGEMENT AND GRIEVANCE REDRESSAL
At Bajaj Electricals, the Company makes consistent efforts to maintain a continuous dialogue with its investors to keep them updated with the Company’s performance and growth plans. It believes in conducting consistent interactions with its shareholders to build trust in them and provide them with a platform to share their suggestions. The Company has a dedicated grievance mechanism process in place, which enables it to track concerns raised by the investors and resolve them at the earliest.