Lower tax helps Bajaj Consumer post 11% YoY rise in Jul-Sep PAT

BENGALURU: Bajaj Consumer Care Ltd reported an 11% on-year rise in net profit to 572.94 mln rupees in the quarter ended September due to lower tax.

The company's profit before tax was flat at 657.36 mln rupees. However, the tax outgo during the quarter fell 40% to 84.40 mln rupees.

With the change in corporate income tax rates, the effective tax rate of the company has reduced to 17.5% from 21.5%, the company said.

The company reported flat volume growth for the September quarter, while total revenue rose a mere 2% to 2.17 bln rupees. Bajaj Consumer Care said that in the general trade channel growth had been sluggish across rural and urban markets and Rural demand witnessed substantial sequential slowdown.

The modern trade channel continued to see strong growth at 19% in Jul-Sep, while the e-commerce trade channel and pharma grew by 97% and 42% respectively.

The company said the business in Canteen Stores Department resumed after a gap of four months. The Canteen Stores Department business was shut on account of procedural issues.

International business grew rapidly in Jul-Sep and contributed 274 basis points to the company's growth in value terms, the company said.

Bajaj Consumer's operating margin expanded by 17 basis points to 28.65% in Jul-Sep.

Volume growth for the company's flagship product Almond Drops Hair Oil was steady at 7.6%, while No marks brand showed a growth of 30%.

The company announced Jul-Sep results on Friday evening.

On Friday, shares of the company ended 1.2% higher at 243.20 rupees on the National Stock Exchange.

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