Bajaj Corp’s profit margins expand in Q1FY17

Bajaj Corp (BCL) has declared its Q1FY17 results on July 25. The company’s revenue has increased by 10.52 per cent to Rs 204 crore in Q1FY17 as compared to previous quarter. Its EBITDA too has reduced by 6.09 per cent to Rs 75.56 crore in Q1FY17 on a quarterly basis. BCL’s net profit also has dropped by 3.37 per cent to Rs 52.2 crore in Q1FY17 as compared to the previous quarter.

BCL’s top line has increased by 1.80 per cent to Rs 204 crore in Q1FY17 as compared to same period in previous financial year. The company’s EBITDA has increased by 6.95 per cent to Rs 72 crore in Q1FY17 as compared to previous fiscal year. The company’s EBITDA margin has expanded by 170 basis points to 35.37 per cent in Q1FY17 on a yearly basis. Its net profit also has risen by 10.17 per cent to Rs 52.2 crore in Q1FY17 on a yearly basis. BCL’s net profit margin has expanded by 194 basis points to 25.62 per cent in Q1FY17 as compared to same period in previous fiscal year.

BCL is aiming for a market share of 65 per cent from other hair oil segments by FY17. The company has over the years created a strong distribution network across 3.7 million retail outlets. It will seek inorganic growth opportunities in the FMCG and hair oil market as part of its growth strategy.

The share price of BCL has decreased by 0.81 per cent on bourses; and closed at Rs 400 on an intraday basis.

BCL is engaged in the trading and manufacturing of cosmetics, toiletries and other personal care products. The company has brands in the hair oil category. It provides its products under brands, Bajaj Kailash Parbat Thanda Tel, Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai Hair Oil, Bajaj Jasmine Hair Oil and Bajaj Nomarks skin care range.