Bajaj Consumer -
Q3 FY 24 and concall and results summary -
Sales - 239 vs 230 cr
Gross margins @ 53 pc ( flat YoY )
EBITDA - 36 vs 32 cr ( margins @ 15 vs 14 pc )
Other income - 11 vs 10 cr
PAT - 36 vs 33 cr
Segment wise sales break up -
Almond Drops Hair oil @ 81 pc of company sales
Grew volumes in mid-single digits, flat value growth
Other Products @ 19 pc of company sales
Reported a value growth of 35 pc in Q3 and 25 pc in 9M FY 24
Urban demand continues to be better than rural demand
International business grew by 30 pc in 9M FY 24. Africa grew by 22 pc, Nepal grew by 27 pc, RoW ( US, Canada, Malaysia ) grew by 61 pc in Q3 FY 24
Have launched brand extensions of Almond Drops in other categories like - Soap, Shampoo, Conditioner, Body lotion - on E-comm and modern trade. Seeing promising response
Continue with the distribution expansion of Bajaj Coconut oil - driving volume growth
Launched Bajaj Gulab Jal in Q3
Expecting that the International business should sustain high growth rates in near future. International business now contributes to > 5 pc of sales vs 2 pc of sales 18 - 24 months back
Aim to keep EBITDA margins in the range of 16-18 pc range for near future
Have been very selective wrt selecting distributors in the GCC and North African countries
The new products that company launches have GMs in the range of 45-50 pc ( barring a few exceptions )
A new product is considered successful, if it is able to reach 50 cr/yr kind of sales after 3 yrs of launch. Company invests aggressively behind brands that are likely to achieve these numbers. If a product is not tracking well enough to reach this scale, the company drops that product. Coconut Oil is one of the product that’s likely to reach 50 cr / yr kind of run-rate. Some of the new serums / lotions are also doing well
Company did an additional 8 cr secondary sales over their primary sales ( as a part of inventory correction ). Otherwise, topline would have grown by an additional 3 pc or so
Disc: not holding, not SEBI registered, only for educational purposes