Revenue from operations rises 4.4 per cent to Rs 846 crore, while grooming segment profit increases 18.5 per cent in the September quarter
Gillette India posted a 10.8 per cent year-on-year increase in standalone net profit to Rs 159 crore in the September quarter, compared with Rs 144 crore in the corresponding quarter last year. Improved cost efficiencies helped the company manage higher commodity expenses during the period.
The Procter & Gamble-owned company recorded revenue from operations of Rs 846 crore in the quarter, up 4.4 per cent from Rs 811 crore a year earlier. Total expenses rose at a slower pace, increasing 2.2 per cent year-on-year.
Its grooming segment, which contributes approximately 80 per cent of the company’s overall sales, reported revenue of Rs 679 crore, marking a 2 per cent increase over the year-ago period. Profit from the segment grew 18.5 per cent, indicating stronger profitability despite relatively modest revenue growth.
Gillette India attributed its ability to absorb commodity cost increases to its productivity programme, which helped offset significant input cost pressures. The company, however, did not provide details of the specific cost-reduction initiatives.
The pressure on input costs was also reflected across the consumer staples sector during the quarter. Brokerage firm Systematix reported that gross margins across the 10 consumer staples companies in its coverage declined 120 basis points year-on-year in the September quarter, with price hikes failing to fully compensate for increased raw material costs.
The trend mirrors the challenges faced by Gillette India’s parent, US-based Procter & Gamble, which reported better-than-expected first-quarter results late last month. However, rising commodity prices continued to weigh on the parent company’s margins.
