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MESSAGE FROM THE CHAIRMAN:
It is indeed a pleasure for me to inform you that even under very difficult macro–economic conditions in India, the company has demonstrated an impressive financial performance for the year ending March 31, 2013. The company continues to grow at one of the fastest growth rates in the FMCG sector both in terms of top line and bottom–line in spite of pressure on margins due to increase in input costs.
The highlight of the company's performance includes:
i. Sales increased to Rs. 60,566 lacs in FY2013 registering a growth of 28.25 % over the previous year.
ii. Profit after tax increased to Rs. 16,738 lacs registering a growth of 39.38 % over the previous year.
The Bajaj Almond Drops Hair Oil brand continues to remain the market leader in the light hair oil category. We have now reached almost Rs. 43.70 lacs cases and our market share continues to inch upwards month on month. I am sure, over the next couple of years this will become the second largest hair oil brand in India across all categories.
The Indian economy is going through a period of unprecedented flux, partly created due to global economic scenario and partly created by our own internal issues. I think it is only during these times that the men get separated from the boys, and I am happy to state that so far Bajaj Corp has proven its mettle and can clearly be classified as one of those men who have grown successfully in spite of all the challenges around it. I do not think such macro–economic problems within India will continue for a long time. Yes, they are here to stay for a short to medium term, but for the long term, I am extremely bullish for the growth of the Indian economy. And that's what makes me believe that over the next decade, a 10 to 20 fold increase in the business of Bajaj Corp is easily possible just within the Indian economy.
The FMCG sector as a whole, being a bellwether sector, has performed well in the markets as well as fundamentally. Bajaj Corp also, since its IPO, has performed well and as I'm given to understand is amongst the top 2 best performing stocks across all sectors post IPO, over the last 3 years. We are going to initiate the process of bringing down the Promoter shareholding to 75% as per the SEBI norms and hopefully that will help broad base the existing shareholder base.
Having one of the highest EBITDA and Net Income margins in the industry is sense of pride. But, over a very long period of time, I do not believe that these margins are sustainable and margins in the region of 300 to 400 basis points lower is something which is more realistic and more possible on a regular term basis going forward. Having said that, the company management will leave no stone unturned to try and maintain margins if not increase it, in the years to come. You would be happy to know that Bajaj Almond Drops Hair Oil brand today reaches more people and touches the lives of more people on a daily basis than any other product or brand which has come out from the Bajaj Group stable. As per India's leading Market Research agency IMRB, our brand Bajaj Almond Drops Hair Oil is consumed by 2.5 Crore Households or approximately 12.5 Crore individuals on an yearly basis.
We adhere to the highest levels of Corporate Governance and CSR activities within the group. We believe ourselves as not owners but trustees of the company on behalf of all stakeholders and therefore, we shall continue to nurture the business accordingly. We will not do anything nor let anything happen which will tarnish the rich and glorious heritage and name that the Bajaj Group is synonymous with. The Bajaj Group is among the few corporate houses in India which is known for trust, integrity, honesty and hard work–the 4 pillars on which any institution needs to be based. I assure you that over the time, these will get highlighted even more and we will continue to shine as we have always done. With that I would like to thank our esteemed shareholders for reposing trust and faith in management of Bajaj Corp.
With Warm Regards,
Kushagra Nayan Bajaj