MAM
Advertising world should re-strategise business now to sustain the impending economic blow
NEW DELHI: The ongoing global lockdown prompted by the deadly COVID-19 has pushed the world economy off a cliff, with even the most developed nations staring into an impending dark phase of recession. The Indian economy, which was already dealing with certain setbacks, is also going to be hit severely. The situation is expected to pave the way for a totally new world and how businesses are done in the coming seven to eight months.
Advertising agencies will have to amp up their strategies significantly to deal with the looming uncertainties and work with a fresher perspective, stated Ad-Vice Software and Consulting Inc founder Vincent G Gong, addressing the advertising community over a Zoom conference, organised by the Advertising Club of Bangalore.
During the hour-long session, Gong shared many tips and tricks with the agencies to keep their business afloat, including suggesting them to stick to a concrete business plan, keeping an eye on their own as well as the clients’ finances, and considering sensitivity analysis of their forecasts.
He recommended ten immediate steps to be taken in the next 90 days to prevent a sliding business, including determining early on for how many months they can pay expenses without any revenue and planning their expenses accordingly.
Gogh prompted the agencies to think twice about entering any long-term obligations during these times and prevent touching their line of credit, but should continuously be looking out for new businesses.
He added that agencies should be focusing on sales efforts, and if possible control the payrolls.
While he said that companies should be considering different steps other than a termination to manage the payrolls, he also warned that any employee who is not doing a hundred per cent for the agency should fear a layoff and agencies be prompt in taking decisions related to expenses. He also asked ad firms to be very transparent with their employees regarding their pays and job security to keep up the employee morale.
Gong's belief is that agencies should not be chasing clients for money as everyone is going through pain. "Keep reminding them that you need to pay your bills, but you need to remember that it is a partnership that you have with your client," he stated.
His action plan also mentioned an improvement in daily project management systems, with more involvement of employees, generation of better briefs and a close vigil on estimates versus actual costs.
To keep hold of existing clients, he urged the agencies to develop a far better understanding of the clients’ consumers and keep innovating with fresher ideas. He insisted that agencies should be willing to turn small projects into elaborate programmes to keep the clients engaged.
Gogh clarified that the agencies might have to make some difficult decisions in the coming three months, but if they do not swallow the bitter pill now, it will become harder for them to keep the shop running in the future.
Brands
Bajaj Consumer Care FY26 profit rises to Rs 193.7 crore
Revenue climbs to Rs 1,092 crore as profit grows 49 per cent YoY
MUMBAI: Hair today, growth tomorrow Bajaj Consumer Care Limited seems to have found its shine again, posting a sharp jump in profitability even as it doubled down on brand spends and expansion. The company reported a net profit of Rs 193.7 crore for FY26, marking a strong 49 per cent rise from Rs 130.1 crore in FY25. Revenue from operations also grew to Rs 1,092.2 crore, up from Rs 942.8 crore a year earlier, signalling steady demand momentum across its portfolio.
For the March quarter, profit stood at Rs 64.1 crore, compared to Rs 31.5 crore in the corresponding period last year, while revenue rose to Rs 308.3 crore from Rs 243.5 crore.
The performance came despite a notable increase in spending. Advertising and sales promotion expenses climbed to Rs 168.3 crore in FY26, up from Rs 137.8 crore in FY25, reflecting continued investment in brand building. Other expenses also rose to Rs 151.3 crore from Rs 134.2 crore, indicating a broader push towards growth.
Operating efficiency, however, held firm. Profit before tax increased to Rs 234.8 crore in FY26 from Rs 157.7 crore a year earlier, supported by disciplined cost management across materials and inventory.
On the balance sheet, the company’s total assets expanded to Rs 959.1 crore as of March 31, 2026, compared to Rs 931.9 crore a year earlier. Other equity rose to Rs 780.3 crore, reinforcing a stronger financial base.
Cash flow from operations saw a significant uptick, reaching Rs 196.9 crore in FY26, nearly three times the Rs 67.9 crore recorded in FY25, highlighting improved working capital management.
However, the year also saw aggressive capital allocation. The company spent Rs 190.2 crore on share buybacks, contributing to a net cash outflow of Rs 196.5 crore from financing activities. Cash and cash equivalents stood at Rs 6.8 crore at the end of the year, down from Rs 25.6 crore.
Even as investments in subsidiaries and assets continued, the numbers suggest a company balancing growth ambitions with shareholder returns keeping one eye on expansion and the other on efficiency.
With margins improving and revenue steadily climbing, Bajaj Consumer Care appears to be combing through the competition with renewed confidence.
