Bajaj Consumer Care reports decent Q2 numbers

Shares of Bajaj Consumer Care rose 0.91% to end at Rs 242.65 on Friday, 11 October 2019.

On a consolidated basis, Bajaj Consumer Care's net profit rose 11.2% to Rs 56.03 crore on a 3.2% increase in net sales to Rs 214.22 crore in Q2 September 2019 over Q2 September 2018.

On a standalone basis, net profit rose 10.9% to Rs 57.29 crore on a 2.6% increase in net sales to Rs 211.19 crore in Q2 September 2019 over Q2 September 2018.

Standalone EBITDA rose 2.71% to Rs 63.61 crore during the period under review. EBITDA margin was reported at 30.12% in Q2 September 2019 compared with 30.10% in Q2 September 2018.

With the change in corporate income tax rates, effective tax rate of the company has reduced to 17.5% from 21.5%, resulting into increase in PAT by Rs 5.73 crore for HY1 FY20 (Rs 3.05 crore for Q1 FY20 and Rs 2.68 crore for Q2 FY20).

Bajaj Consumer said that growth had been sluggish across channels. Rural demand witnessed substantial sequential slowdown while urban retail off takes witnessed sharp decline.

Hair oil category grew by 5.9% in volume in MAT September 2019, whereas value growth has been 11.6%. Antimarks category declined by 1.0% in volume and grew by 6.0% in value in MAT September 2019.

Bajaj Consumer Care has presence in the hair oil category with brands like Bajaj Almond Drops Hair oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Hair oil and Bajaj Jasmine Hair oil. The company ventured into the skin care category with the acquisition of Nomarks brand.

The stock hit a 52-week high of Rs 423.45 on 12 Oct 2018. The stock hit a 52-week low of Rs 232.5 on 03 Oct 2019.

The stock had underperformed the market over the past one month, sliding 4.73% compared with 2.30% fall in the Sensex.

The scrip underperformed the market in past one quarter, falling 23.47% as against Sensex's 1.79% fall.

The scrip had also underperformed the market in past one year, declining 39.65% as against Sensex's 12.13% fall.

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