Q1 Results: Bajaj Consumer’s Hair Oil Volume Growth At Eight-Quarter Low
Bajaj Consumer’s hair oil volume growth fell to its lowest in two years amid a consumption slowdown, particularly in rural India. (Photographer: Sanjit Das/Bloomberg News)

Q1 Results: Bajaj Consumer’s Hair Oil Volume Growth At Eight-Quarter Low

Bajaj Consumer Care Ltd.'s hair oil volume growth fell to its lowest in two years amid a consumption slowdown, particularly in rural India.

“Growth depends on how total hair oil volume and value go up in the remaining quarters. The current (domestic volume) growth is 5-5.3 percent, which is the lowest in eight quarters,” said Sumit Malhotra, managing director of the maker of Bajaj Almond Drops hair oil, told BloombergQuint. “If that doesn’t change, there will be a strain on growth.”

The expected rebound in rural consumption, Malhotra said, has really not translated.

But the low-growth phase is the time to invest to gain market share, according to Malhotra. The company will continue to spend highly on advertisements in the coming quarters but that wouldn’t be a drag on its bottom line, he said. In the first quarter ended June 30, advertising expenditure and sales promotions did impact the company’s margin.

Bajaj Consumer Q1 Results Highlights:

  • Revenue up 7.6 percent at Rs 240.7 crore.
  • Net profit rose 9 percent to Rs 56.7 crore.
  • Ebitda rose 1 percent to Rs 68.6 crore.
  • Ebitda margin at 28.5 percent versus 30.4 percent.
  • Gross margin up 130 basis points at 67.9 percent.
  • Market penetration of Bajaj almond drops hair oil now at 21 percent versus 18 percent last year.

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