Bajaj Corp posts a muted set of numbers

FMCG company Bajaj Corp came out with a quiet set of Q3FY16 numbers on Thursday.

Bajaj Corp posted an increase in revenue by 3.6 per cent from Rs 205.40 crores to Rs 212.77 crores in Q3FY16 compared to the same period previous fiscal. Increase in revenue was muted due to sluggish rural demand for company’s product. Owing to the fact that there were no new product launches in the quarter, advertising spends were down 12.6 per cent on yearly basis to Rs 15.3 crore in quarter ended December 2015. Advertising as a percentage of revenue declined to 7.2 per cent from 8.5 per cent in the same quarter last fiscal. EBITDA increased from Rs 60.06 crore Y-O-Y to Rs 68.83 crore, an increase of 14.60 per cent. Company was able to post a good operational performance mainly due to low commodity prices of its raw material, as its key ingredient LLP (Light Liquid Paraffin) declined by a strong 27 per cent Y-O-Y compared to the same quarter previous year aiding the performance. Almond Oil maker was able to expand its margins by 311 basis points benefiting from the overall benign input costs. Profit after deducting tax rose by a mighty18.5 per cent Y-O-Y compared to the corresponding period last fiscal. PAT rose from Rs 41.84 to Rs 49.60 crores.

In a subdued demand environment, sales volume increased by a mere 2.96 per cent in Q3FY16. On a 9-month basis volume increased by 7.68 per cent at the end of Q3FY16. Sales of company’s main product Almond Drop Hair Oil (ADHO) increased by 4.35 per cent at the end of Q3FY16. ADHO was able to maintain its market share leadership in the 100 ml hair oil segment as it stood at 60.6 per cent. Company has been innovative in its marketing initiatives, ADHO being the only brand available in sachets, a measure taken towards penetrating further into the rural markets.

Bajaj Corp also announced that the Board of Directors of the company has recommended an interim dividend on equity shares of the company for the financial year 2015-16 at the rate of 1150 per cent i.e. Rs 11.50 per share.

Reacting to the results stock was up 1.4 per cent and was trading at Rs 411 during the early hours of trade. Shares of Bajaj Corp have been trading in a range bound manner.

The promoter's holding in the company stood at 66.86 per cent while Institutions and Non-Institutions held 26.9 per cent and 6.23 per cent respectively.