BENGALURU (Reuters) - India's Bajaj Electricals reported its third consecutive drop in quarterly profit on Monday, as high inflation dampened festive spending and rural demand remained subdued.
Consolidated net profit slumped nearly 40% to 373.6 million rupees ($4.5 million) for the three months ended Dec. 31, following declines of 56% and 14% in the previous two quarters.
The October-December period typically marks the festival season in India, during which consumers traditionally splurge on non-discretionary products. However, demand was subdued in the latest quarter due to elevated inflation levels, which restrained expenditure on non-essential items, in both rural and urban areas, analysts said.
While the likes of Voltas and Blue Star benefited from demand for air coolers and fans due to warmer-than-usual temperature in the quarter, companies such as Havells were hit by slowing sales of other home appliances.
"Consumer products continue to show signs of rural stress and weak consumer demand," Bajaj Electricals said in a statement.
Bajaj Electricals' total revenue fell 6.2% to 12.28 billion rupees, marking the third consecutive quarter of decline.
Sales of consumer products, which accounted for nearly 80% of revenue, dropped 8%, while sales of lighting products barely increased about 1%.
The Mumbai-based company's input costs increased 4.8% to 1.24 billion rupees.
($1 = 83.0386 Indian rupees)