Bajaj corp limited

Conf Call Key highlights by Capital Mkt
Overall hair oil volume grew by 0.5% during April to August period. Light hair oil (LHO) grew by 6.6% during same period. Coconut oil, cooling oil and ayurvedic oil volume declined during same period.
The net sales for September 2015 quarter have increased by 11% to Rs 208.19 crore. Volume grew by 8%. Almond Drop (ADHO) sales grew by 11% to Rs 187.46 crore with volume growth of 6%. OPM increased by 337 bps to 31.1% due to fall in raw material cost and advertisement cost. As a result, the operating profit increased by 24% to Rs 64.72 crore. The profit before tax and EO has increased by 20% to Rs 71.21 crore due to rise in OPM. The net profit has inclined by 25% to Rs 46.78 crore due to rise in OPM. During the quarter, average price of LLP decreased to Rs 58.82/kg from Rs 84.27/kg in corresponding quarter of previous year. Average price of Refined Oil increased to Rs 82.02/kg from Rs 69.99/kg in corresponding quarter of previous year.LLP for Q3 is fully covered.Current LLP buying is at Rs 52-53/kg.The mgmt said that the full drop of LLP prices is not yet captured in P&L due to stock buildup.
ADHO primary offtake grew by 7.8%. Secondary volume offtake grew by 9%.ADHO value market share is 61%.ADHO is now present in 2.91 retail outlets.The price gap between LHO and coconut oil has decreased.ASP was 17% of sales in Q2. Ad spend on Nomarks brands double in last 2 quarters.
Nomarks turnover in Q2 was Rs 10.3 crore, drop by 26%. As per the management, it is in 2nd phase of integration of brands of Nomark into Bajaj Corp, as such there was reduction in SKU and stocks at retails, which impacted the sales.Anti-blemish cream category has grown by 23% during April – August period. Facewash category has grown by 34%.60% of cream sales come from chemist shops and for facewash it is 10-12%. The company is now shifting distribution from chemist to general trade.
The company has added 6 new countries in its international business. It is doing registration of Nomarks brands across various countries. It will enter into Africa and CIS countries.For Q2, growth came from Urban region. Rural growth was disappointing. The gap between rural and urban growth has reduced to 4%.The mgmt said that it don’t see any scope of good volume growth in near future.Tax rate would be around 20% plus.