Bajaj Consumer Care (BAJAJCON) Q4 13/14 earnings summary

Executive summary

• FY14 revenue grew 10.1% to ₹71,185.16 lakh; profit after tax fell to ₹15,044.36 lakh, including ₹2,859.65 lakh of NOMARKS brand and intellectual-property amortisation.

• Bajaj Almond Drops gained light hair oil share despite a slowdown in the broader hair oil market; the NOMARKS acquisition expanded the portfolio into skin care.

Financial highlights

• Sales were ₹67,068 lakh, up 10.74% YoY; total revenue, including other income, was ₹71,185.16 lakh versus ₹64,676.98 lakh.

• Profit before exceptional items and tax rose 3.68% to ₹21,722.10 lakh; PAT declined 10.12% to ₹15,044.36 lakh.

• EBITDA increased 8.01% to ₹18,665.46 lakh; higher advertising and sales promotion contributed to a lower EBITDA margin.

• EPS was ₹10.20 versus ₹11.35 in FY13; exceptional NOMARKS trademark and intellectual-property amortisation was ₹2,859.65 lakh.

Outlook and guidance

• NOMARKS integration was tracking FY14 projections; completion was expected in H1 FY15, with further acquisitions to follow integration.

• Bangladesh operations expected volume growth in FY15 after third-party manufacturing began commercial production in March 2014.

• Management expected India’s economic growth to improve to 5.5% in FY15, while citing inflation and monsoon-related uncertainties.

• Treasury allocation was to remain tactically managed across government and corporate bonds and certificates of deposit, subject to rates and liquidity while maintaining credit quality.