Bajaj Consumer Q1 Results: Stock falls despite strong profit growth, margin expansion

Bajaj Consumer Q1 Results: Stock falls despite strong profit growth, margin expansion


Shares of Bajaj Consumer Care fell about 5% from the day’s highs on Monday, July 13, despite the FMCG company reporting a sharp increase in profit and operating margin for the June quarter.

The company’s standalone net profit rose 84.8% year-on-year to ₹70.7 crore in the June quarter from ₹38.3 crore a year earlier, while revenue from operations increased 25% to ₹341.6 crore from ₹273.4 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled to ₹83.4 crore from ₹41 crore in the year-ago quarter, with the EBITDA margin expanding to 24.4% from 15% a year earlier. Gross margin also improved to 64.2% from 60.8% in the corresponding quarter last year.

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The company reported profit before tax of ₹86.7 crore for the quarter, compared with ₹47.5 crore a year ago. Earnings per share stood at ₹5.37, up from ₹2.89 in the corresponding period last year.

The June quarter marked another strong performance for the company, extending its recent growth momentum. Revenue has grown by 13%, 31%, 30.4% and 24.9% year-on-year over the last four quarters, while EBITDA growth stood at 45%, 114%, 140% and 103%, respectively.

The company also informed exchanges that its board approved the appointment of Jignesh Nagda as Company Secretary, Compliance Officer and Key Managerial Personnel with effect from July 24.

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Despite the strong earnings, shares of Bajaj Consumer Care fell sharply and were trading nearly 2% lower at around ₹658 on Monday afternoon. The stock had rallied nearly 150% so far this year and about 180% over the last 12 months.



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