Bajaj Consumer Care Q4 Review - Margin Pressure Continues: Dolat Capital
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Dolat Capital Report
Bajaj Consumer Care Ltd.’s Q4 FY21 revenue and Ebitda exceeded our estimate.
Revenue growth was supported by new product launches, price hikes and favorable base.
During Q4 FY21, general trade grew 40%, alternate channels increased 61% year-on-year.
Modern trade witnessed good traction led by consumer and trade promotions. Regular flow of orders from canteen stores department was encouraging.
Gross margin contracted 700 basis points due to elevated raw material prices, change in product mix and inventory provision in sanitizers.
Full impact of price increases (up 2.5%) taken in February-March 2021 will be reflected in Q1 FY22E.
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