Bajaj Consumer Care (BAJAJCON) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 standalone sales were INR 236.9 crores, down 8.8% year-on-year but up 2.9% sequentially, impacted by a high base and a one-time wholesale channel correction.

• The company implemented a planned hygiene correction in the wholesale channel, rationalizing discounts and broadening the wholesaler base by 13%, expected to improve future performance.

• Retail and rural channels remained steady, with retail loyalty programs reaching 12,000 outlets and ongoing focus on expanding retail presence.

• Project Aarohan, a distribution revamp, is underway to enhance reach in high-potential towns and villages, aiming for a 1.4x increase in urban retail outlets and 1.1-1.2x in rural villages.

• Auditors issued unmodified (clean) limited review reports for both standalone and consolidated results.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹24,117.84 lakh, down from ₹26,418.07 lakh in Q1 FY24 and up from ₹23,590.71 lakh in Q4 FY24.

• Gross margin for Q1 FY25 was 55.2%, expanding by over 50 basis points both sequentially and year-on-year.

• Standalone EBITDA stood at INR 38.4 crores, with an EBITDA margin of 16.2% of sales.

• Standalone PAT for Q1 FY25 was ₹3,798.16 lakh, compared to ₹4,541.13 lakh in Q1 FY24 and ₹3,730.75 lakh in Q4 FY24.

• Non-ADHO portfolio contributed 18% of total revenue in Q1 FY25, growing 17% year-on-year.

Outlook and guidance

• Targeting mid- to high single-digit growth for FY25, with Q2 expected to be stronger due to the correction and Project Aarohan.

• Long-term goal is a sustained double-digit CAGR, driven by new products and international expansion.

• EBITDA margin guidance remains at 16%-18%, with potential for improvement as scale builds.

• Urban demand expected to remain stable; rural demand to improve with higher government spending.

• Raw material prices projected to stay stable.