Bajaj Consumer Care’s Q1 2024 financial results were released on August 9, 2024. Compared to the same quarter last year, both revenue and profit showed a decline. In contrast to the same quarter last year, the company’s revenue fell by 8.97% to ₹245.94 crore; this was accompanied by a reduction in net profits of 19.69% to ₹37.12 crore. Nevertheless, on a quarter-over-quarter basis, things turned around. When compared to Q4 2023, the company’s revenue rose 2.49% and profits increased 4.32%.
Operating income showed mixed results, advancing 6.83% quarter-over-quarter but retreating 24.68% year-on-year. The company’s profitability was significantly impacted by an explosion in selling, general, & administrative (SG&A) expenses–up 153.62% from the last quarter and up 158.13% compared to the same period last year. These expenses are an additional burden on the company’s bottom line.
In the first quarter of 2024, earnings per share (EPS) were ₹2.6, down 19.75% from the same period a year earlier. In Q1 2024, EBITDA (earnings before interest, tax, depreciation, and amortization) plunged 23.6% year-over-year to ₹36.6 crore, with the EBITDA margin contracting to 14.9% from 17.7% in Q1 2023.
Bajaj Consumer Care’s performance varied across different business segments. In the ‘general trade’ category, market aiming led to a decrease, with the company adjusting wholesale discounts and scheme rationalization to compensate. As opposed to this, the ‘organized trade’ sector demonstrated robust growth. Business in terms of dollar terms was up by 12% year-on-year and 15% compared to last quarter, with a saliency of 26%. Within this sector, we find that ‘modern trade’ increased by 9%, e-commerce recorded 13% growth, and canteen and institutional sales both saw a 15% upswing compared with last year.
Likely have customers smile with what took place in some places The international business of the business achieved modest % growth yoy, but a remarkable% q3oq spurt! Nepal was one of the spotlights, with stunning % growth yoy and % QoQ. The Middle East and Africa grew by 45% sequentially; the Region ‘rest of world ‘ was up 43 percent year-on-year, 55 percent QoQ.
Despite the challenging financial results, Bajaj Consumer Care’s stock performance has held up relatively well. The company’s performance over the last week was a yield of 6.81%, during the last six months 30.19%, and for the year-to-date 27.55%. As of August 11, 2024, the company is valued at ₹3,999.65 crore with considerable stock price variance over the past year; its high in 52 weeks was ₹286.9, and its low was ₹199.75.
Despite the recent financial challenges, analysts remain bullish on Bajaj Consumer Care. Of the 7 analysts covering the company, 4 have assigned a rating of ‘Buy ‘, while 3 have given it a ‘Strong Buy ‘. As of August 11, 2024, Bajaj Consumer Care had a consensus rating of ‘Strong Buy ‘, indicating that analysts are optimistic about the company’s future performance.
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On August 9th, 2024, the Company’s shares closed at ₹272.00 on the BSE -₹8.55 or 3.05 %. Above is the result of a dip in value prompted by Q1 financials. As Bajaj Consumer Care battles these financial ills, investors and analysts will be looking closely at its performance in the coming quarters to see whether it can return to growth and profitability.