Bajaj Consumer Care (BAJAJCON) Q4 11/12 earnings summary

Executive summary

• FY12 sales reached ₹47,224 lakh, up 31.66% YoY; PAT rose 42.79% to ₹12,009 lakh despite higher raw-material and packaging costs.

• Volume grew 21.24%; Bajaj Almond Drops remained a leading light hair oil brand, while rural and semi-urban distribution expansion supported growth.

Financial highlights

• Revenue from operations was ₹47,331.47 lakh and total revenue ₹51,069.13 lakh for FY12, versus ₹35,944.06 lakh and ₹37,645.65 lakh, respectively, in FY11.

• PBT before exceptional items was ₹15,133.68 lakh versus ₹12,404.56 lakh; FY11 included ₹1,896.25 lakh of IPO expenses, while FY12 PAT was ₹12,008.78 lakh versus ₹8,410.28 lakh.

• EBITDA was ₹11,663.79 lakh, up 7.08% YoY; advertising and sales promotion costs rose to ₹6,470.90 lakh from ₹4,047.06 lakh.

Outlook and guidance

• FY13 plans include extending successful rural promotional vans from West Bengal into five additional states and expanding distribution into small towns and villages.

• Management expected to close an acquisition in H1 FY13, while emphasizing prudent deal pricing and shareholder value; hair care and skin care were priority categories.

• Focus remained on increasing Bajaj Almond Drops’ share in light hair oils through visible media campaigns and distribution-led retail expansion.