Bajaj Consumer Care (BAJAJCON) Q4 17/18 earnings summary

Executive summary

• FY18 sales rose 2.70% to ₹81,185 lakh, while EBITDA fell 2.34% to ₹26,367 lakh and PAT fell 2.12% to ₹21,627 lakh.

• Growth strategy centered on product innovation, distribution expansion, automation and operating efficiencies amid volatile markets and GST-related disruption.

Financial highlights

• Standalone total revenue was ₹85,556 lakh vs ₹83,189 lakh; PBT before exceptional items declined 8.11% to ₹27,498 lakh.

• Standalone PAT was ₹21,627 lakh vs ₹22,096 lakh; consolidated revenue was ₹85,292 lakh vs ₹83,629 lakh and consolidated PAT was ₹21,108 lakh vs ₹21,824 lakh.

• FY18 had no exceptional item; prior-year results included ₹1,838 lakh amortization of trademark and intellectual property, shown as an exceptional item.

• Employee costs rose 27.07% to ₹7,547 lakh, advertising and sales promotion rose 12.18% to ₹11,824 lakh, and material costs rose 1.93% to ₹27,307 lakh.

Outlook and guidance

• Priorities include accelerating sales growth, sustainable profitable growth, product innovation, automation and further improvement in systems and processes.

• FY19 plans include closing six additional depots, improving freight tracking and delivery, scaling supply-chain analytics, and reconfiguring manufacturing and distribution networks for GST and fiscal-benefit changes.

• The outlook anticipated stronger Indian GDP growth in FY19, with normal monsoon conditions expected to support rural demand; crude was expected to trade at $65–$75/barrel with upside price risk.