Bajaj Corp Ltd. (BCL) | Q3FY15 Result Update| Stellar Performance: Strong volume growth; Maintain HOLD | TP Revised from Rs.279 to Rs.427 :: IndiaNivesh

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 Bajaj Corp Ltd (BCL) performance in Q3FY15 quarter was ahead of our estimate
on all fronts.
 BCL’s top line grew by 29.8% Y/Y to Rs.2,054 mn (INSPL est: Rs.1,862 mn) led by
21.1%/8.8% Y/Y growth in volume/Pricing. Excluding, NOMARKS, revenue went
up 25.8% Y/Y to Rs.1,918 mn. During the quarter, ADHO segment reported
25.1% Y/Y to Rs.1,861 mn revenue growth. Other segments (BAHO, ASHO,
KPCO Others) revenue grew by 52.0% Y/Y to Rs.57 mn (v/s Rs.38 mn in Q3FY14).
NOMARKS delivered 135.6% Y/Y to Rs.136 mn (v/s Rs.58 mn in Q3FY14).
 EBITDA went up 40.3% Y/Y to Rs.601 mn (v/s INSPL est Rs.527 mn). During the
quarter, EBITDA margin expanded 218bps y/y to 29.2% on-account of lower
material cost (38.1% v/s 40.0% in Q3FY14), partially offset by higher
advertising and sales promotion expenditure. During the quarter, LLP prices
went down 1.1% Y/Y to Rs.75.0/KG (v/s Rs.75.9/KG in Q3FY14). Other
expenditure during the quarter also went down 46.5% Y/Y to Rs.195 mn (v/s
Rs.364 mn in Q3FY14).
 Other income during the quarter stood at Rs.67 mn v/s Rs.97 mn in Q3FY14.
Tax rate during the quarter stood at 21% [v/s 21% in Q3FY14]. During the
quarter, BCL reported amortization of Rs.117 mn (exceptional item) as cost
related to NOMARKS acquisition. In next four years (FY14-17), total acquisition
cost of Rs.1409 mn will be amortized (Rs.638 mn is already amortized till
date). Reported Net profit went up 43.6% Y/Y to Rs.418 mn. Adjusting other
income and exceptional items, the net profit stood at Rs.469 mn (v/s Rs.312
mn in Q3FY14).

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