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Bajaj Consumer Care Net Profit falls by 34.5% in Q4FY22, declares dividend of Rs. 4 per share | Q4FY22 Result Analysis & Conference Call Highlights

Bajaj Consumer Care Net Profit falls by 34.5% in Q4FY22, declares dividend of Rs. 4 per share | Q4FY22 Result Analysis & Conference Call Highlights

Published on 07 May 2022 .Views 21 .Comments 0
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  • The unprecedented inflation in the economy due to steep rise in material price continue to impact disposable income as well as consumer spending adversely.
  • The company is slowly witnessing a recovery in demand, but Q4FY22 remained subdued.
  • The Hair Oil industry declined by 6.5% YoY in Q4FY22.
  • The Hindi belt where the company is having larger presence continued to decline faster while the markets of Maharashtra, West Bengal, and South which fared relatively better also experienced a slowdown in Q4.
    Volume de-growth in Q4FY22 of 9.8%
  • High dependency in LLP (Light Liquid Paraffin) and RMO (Refined Mustard Oil), both of which are witnessing high inflation have highly impacted the margins of the company
  • The company has taken price hikes of around 7% in the last 5 quarters
  • Premium categories have witnessed a sharper decline with slowdown in rural markets as witnessed in Q4 as well as the key wholesale markets in the North-East and Central Parts of the country continued to see reduced business volume
  • The Company took a one-time intervention to rationalize wholesale price uniformity across states in January which affected January Sales but had its desired impact February March, and April have all had sequential growth since with improved pricing there is renewed focus on wholesale to regain distribution back to pre-covid levels
  • The price of LLP & RMO will remain in the upward trend until Ukraine-Russia crisis resolves.
  • The company have strengthened its retail channel across top towns with every new retail activation program being rolled out to increase focus in the top cities both modern trade
  • E-Commerce channel continued to grow up with 50% growth in quarterly basis and 80% growth in yearly basis.
  • In International business, Bangladesh grew by 36% in Q4FY22 and 55% in FY22.
  • The situation in Nepal has worsened as non-essential goods imports are being banned.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF

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