Bajaj Corp PAT Nosedives By 22%

Bajaj Corp a part of the Bajaj Group has announced its quarter ended March result for the fiscal year 2014. The result shows that the company has posted a weak set of numbers during this quarter. The scrip of the company was trading at Rs 221.10 down by 3.43 per cent, on the BSE.

The company has posted total sales of Rs 184.18 crore during the quarter ended March 2014, reporting a growth of mere 0.26% on YoY basis. While on volume wise the total sales of the company has deteriorated by 6.4% YoY during the Q4FY14. 

The EBITDA of the company has increased by 1.77% YoY to Rs 52.76 crore during Q4FY14. Such increase was due to reduction in cost of raw material and advertising expense as proportionate to sales. The cost of raw materials has reduced to 41.75% of the total sales for Q4FY14 as against 42.16% for Q4FY13. Whereas the advertising expense during Q4FY14 has reduced to 15.5% of the total sales as against 16.46% during consequent quarter of previous year. As far as margins are concerned, the EBITDA margin of the company has increased by 45 basis points to 28.59% during the quarter ended March 2014.

Excluding the exceptional expense the company has posted a profit after tax (PAT) of Rs 50.06 crore during the last quarter of this fiscal year, reporting a rise of 1.85% YoY. If the exceptional expense is considered the PAT of the company has plunged by 22% YoY during the Q4FY14. While the exceptional item of Rs 11.74 crore was on account of amortization of the cost of acquisition of the brand. The company had acquired Ozone Ayurvedics' Nomarks brands in August last year. 

On valuation, the shares of the company are trading at its trailing twelve months earnings at 21.56x. The company has declared an interim dividend of Rs 6.5 per share for the fiscal year 2014.