Bajaj Consumer Care (BAJAJCON) Q4 10/11 earnings summary

Executive summary

• FY11 sales rose 21.76% to ₹35,867 lakh; EBITDA increased 11.45% to ₹10,893 lakh, while PAT edged up 0.23% to ₹8,410 lakh after IPO costs and higher tax.

• Rural penetration and broader distribution supported Bajaj Almond Drops Hair Oil growth; higher raw-material and packaging costs compressed EBITDA margin.

Financial highlights

• Sales were ₹35,867.26 lakh versus ₹29,457.76 lakh in FY10; total income reached ₹37,645.50 lakh versus ₹29,971.15 lakh.

• PBT before exceptional items grew 22.15% to ₹12,404.56 lakh; ₹1,896.25 lakh of IPO expenses were expensed as an exceptional item.

• PAT was ₹8,410.28 lakh versus ₹8,391.34 lakh; effective tax rate rose to 19.97% from 17.37%, including the impact of a higher MAT rate.

Outlook and guidance

• Focus remains on growing Bajaj Almond Drops Hair Oil’s light-oil market share through stronger distribution and heavy media advertising.

• Consumer response to the new 500ml PET pack will inform future packaging; a new cooling-oil variant was launched, with a niche-market opportunity expected.

• Four personal-care products were planned, with IPO proceeds allocated for promotion; launch timing and product development remained at different stages.