Bajaj Consumer surges 18%

Bajaj Consumer Care surged in the mid-afternoon session by almost 18% to hit an intraday high at Rs.178.65, which is not too far from its 20% UC of the day at Rs.180.95.

The company posted an all-round decline. Sales were down 18% (YoY) at Rs.191 crore and net profit was down 7.5% at Rs.54 crore. EBITDA fell 19% at Rs.58 crore while margins fell from 30.93% to 30.42%.

Though the company posted earnings for Q1FY21 which showed strain of the pandemic and lockdown, the market is reacting positively because of the way in which it innovated and rose up to the situation. It has now developed a strong E Commerce network and presence that grew strongly as a platform in Urban India during Lockdown. In rural India, distribution was expanded through scale up of vans. Overall coverage expanded to over 50,000 villages across country.

The company said, "Q1FY21 performance was impacted due to nationwide lockdown to contain the outbreak of COVID 19. We witnessed significant disruptions during the first fortnight of April but since then the company has been able to steadily revive its operations and reverted to near normal business in May and June’20".