Bajaj Consumer Care (BAJAJCON) Q4 12/13 earnings summary

Executive summary

• FY13 sales rose 28.25% YoY to ₹605.66 crore; PAT increased 39.38% to ₹167.38 crore despite input-cost and macroeconomic pressure.

• Bajaj Almond Drops Hair Oil retained leadership in light hair oil, supported by distribution expansion, rural growth and low-unit-price packs.

• Financial statements received an unqualified audit opinion; operations remained debt-free with negative net working capital excluding cash and bank balances.

Financial highlights

• Revenue from operations was ₹606.72 crore, up from ₹473.31 crore; total revenue was ₹646.77 crore versus ₹510.69 crore in FY12.

• EBITDA increased 48.21% YoY to ₹172.87 crore; EBITDA margin was 28.54% versus 24.70% in FY12.

• PBT before exceptional items rose to ₹209.55 crore from ₹151.34 crore; PAT reached ₹167.38 crore from ₹120.09 crore.

• Sales volume grew 20.53% YoY; EPS was ₹11.35 versus ₹8.14.

Outlook and guidance

• Management expected FY14 domestic growth to improve versus FY13; GDP growth above 7% was projected if global growth remained stable.

• Management expected to close a couple of acquisition transactions in FY14, subject to strategic fit, prudent pricing and financing.

• Product 3 was expected to launch within six months and Product 4 within 12 months; Product 1 launch was postponed pending improved input-cost economics.