Centrum Broking: Bajaj Consumer Care Q1; Focus On Performance Excellence Led Improvement

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Bajaj Consumer Care Q1 FY21 results print was weak, yet above expectations with Revenue/ Ebitda/ Profit after tax declining 17.6%/ 16.5%/ 7.6% YoY. Notably, the value decline in company’s flagship product Almond drops hair oil was much higher at 23.5% as the premium hair oil category continued to cede share to economy hair oils (Amla). However, company could recover part of its sales lost in March 20 (Rs 630 million). Further it has focused on economy segment and also launched hand sanitizer (sales approximately Rs 130 million). Nonetheless, lower pace of revenue resulted led in reduction in gross margin (307 basis points). Yet, the company was able to maintain its Ebitda margin at 27.3% over 36 bps led by cutting its advertisement spends by 37% and savings from other overheads by 27%.On the strategic direction the management alluded that it would come up with preferred strategy soon once complete clarity emerges, as Covid-19 still poses uncertainty. Further, considering the revenue beat and reduction in overheads in Q1 FY21 we increase revenue and earnings estimates for FY21E/FY22E by 4.7%/1.5% and 8.8%/4.2% respectively..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Centrum Broking: Bajaj Consumer Care Q1; Focus On Performance Excellence Led Improvement

Centrum Broking: Bajaj Consumer Care Q1; Focus On Performance Excellence Led Improvement

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