Bajaj Consumer Care Limited , a prominent player in the personal care products sector, has reported a robust performance for the first quarter, alongside significant corporate actions that signal strategic growth initiatives.

Financial Highlights

Bajaj Consumer Care Limited reported standalone revenue of ₹244.50 crores, up 3.2% year-on-year, with EBITDA growing 11.6% to ₹42.80 crores and PAT increasing 2.8% to ₹39.00 crores. Consolidated revenue reached ₹259.50 crores, growing 7.4% year-on-year, driven by the inclusion of acquired subsidiary Vishal Personal Care Limited.

The company's flagship Almond Drop Hair Oil grew 4% while Bajaj 100% Pure Coconut Oil delivered over 20% growth. Gross margins improved to 56.6% on standalone basis, up 140 basis points year-on-year.

Market Performance

General Trade registered growth after a gap with strong urban performance, while Modern Trade and E-Commerce both grew over 20%. However, rural markets remained sluggish and international business faced double-digit decline due to external headwinds.

Strategic Corporate Actions

Share Buyback Proposal

The Board of Directors has approved a significant share buyback proposal, demonstrating confidence in the company's financial strength and commitment to enhancing shareholder value. Key details of the buyback include:

The proposed buyback is subject to shareholder approval through a special resolution via postal ballot.

Subsidiary Acquisition

Bajaj Consumer Care completed the acquisition of Vishal Personal Care Limited as a wholly-owned subsidiary. This strategic move is aimed at strengthening the company's market position.

Segment Performance and Future Outlook

The company continues to operate primarily in the "Cosmetics, Toiletries and Other Personal Care products" segment. The consistent growth in revenue and profitability reflects the company's strong market presence and effective business strategies.

Bajaj Consumer Care Limited has also expanded its Project Aarohan initiative, further demonstrating its commitment to growth and innovation.

As the company moves forward with these initiatives, investors and industry observers will be keenly watching the impact on its market share and financial performance in the coming quarters.

Bajaj Consumer Care Limited , a prominent player in the Indian consumer goods sector, has announced a significant share buyback program, demonstrating confidence in its financial position and commitment to enhancing shareholder value.

Buyback Details

The company's Board of Directors has approved a buyback of up to 64,34,482 equity shares, representing 4.69% of the total equity shares, at a price of INR 290 per share. The total buyback size amounts to INR 186.60 crore, excluding transaction costs.

Premium Pricing

The buyback offer price of INR 290 per share represents a substantial premium:

• 66.50% over the three-month volume-weighted average price on BSE
• 20.63% over the closing price on the announcement date

Financial Implications

The buyback size constitutes 23.70% and 24.88% of the company's aggregate paid-up equity capital and free reserves based on the latest audited standalone and consolidated financial statements, respectively.

Shareholder Approval and Timeline

Bajaj Consumer Care is seeking shareholder approval through a postal ballot with e-voting. The results of the postal ballot will be announced after the voting period concludes.

Exclusions and Reservations

The buyback excludes promoters and promoter group members. Notably, 15% of the buyback is reserved for small shareholders, as defined by SEBI regulations.

Funding and Objectives

The company plans to fund the buyback through free reserves and internal accruals, without resorting to borrowed funds. This move aims to return surplus cash to shareholders and potentially improve return on equity.

Market Impact

The announcement has likely sparked interest among investors, given the attractive premium offered. The buyback could potentially lead to a reduction in the equity base, which may have a positive impact on earnings per share and other financial metrics.

Compliance and Execution

Bajaj Consumer Care has confirmed compliance with all relevant regulations, including maintaining the minimum public shareholding requirement. The company has engaged KFin Technologies Limited to facilitate the e-voting process for shareholders.

This share buyback represents a significant corporate action by Bajaj Consumer Care, reflecting its strong financial position and commitment to delivering value to its shareholders. Investors and market analysts will be closely watching the execution of this buyback and its impact on the company's stock performance in the coming months.