Bajaj Consumer Care (BAJAJCON) Q4 16/17 earnings summary

Executive summary

• FY17 sales remained broadly flat in a sluggish market; standalone PAT rose 11.6% YoY, supported by lower brand amortization and benign input costs.

• Focus remained on portfolio innovation, distribution automation, operational efficiency and building international business; a new R&D center and Guwahati plant were established.

Financial highlights

• Standalone sales were ₹79,049.07 lacs, down 0.40% YoY; total revenue including other income was ₹83,188.80 lacs, up from ₹82,463.62 lacs.

• Standalone PAT rose 11.60% to ₹22,095.76 lacs; PBT before exceptional items was ₹29,925.81 lacs versus ₹29,867.90 lacs.

• EBITDA, excluding brand amortization, declined 3.07% to ₹27,000.24 lacs; material consumed fell 9.86%, while employee costs rose 29.60% and advertising and promotion costs rose 15.29%.

• Consolidated revenue from operations was ₹79,689.73 lacs and PAT was ₹21,824.21 lacs; consolidated total comprehensive income was ₹21,728.58 lacs.

Outlook and guidance

• FY18 outlook anticipated economic recovery as remonetization advanced, discretionary spending recovered and normal monsoon conditions supported rural demand; GST implementation was expected to disrupt the first half.

• Priorities include innovation across product segments, automation and process improvements, supply-chain analytics, network optimization and profitable, sustainable growth.

• International business, then ~5% of turnover, was targeted to reach a double-digit contribution; subsidiary offices were registered in UAE and Bangladesh to support expansion.