Gillette India`s Q1 profit rises on steady demand for grooming products
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Gillette India, known for its shaving razors, posted a nearly 7% rise in its quarterly profit on Tuesday, as moderating inflation helped lift demand for its grooming products, including in the country's hinterlands.
Gillette India, in which consumer goods giant Procter & Gamble Co holds a 75% stake, said its first quarter profit rose to 926.9 million rupees ($11.13 million) from 867.8 million rupees a year ago.
India's annual retail inflation eased to 6.83% in August from 7.44% in July, further easing to 5.02% in September on softer food prices, helping revive consumers' discretionary spending.
Revenue from its mainstay grooming segment, which accounts for over three-fourths of the total revenue, rose 7.8%, while the smaller oral care segment reported a 7% increase.
Gillette India's total revenue from operations climbed 7.7% to 6.68 billion rupees.
Total expenses for the company rose nearly 10% led by a 36% climb in the stock-in-trade purchase costs.
Fellow P&G Group company, Procter & Gamble Hygiene and Health Care on Monday posted a 36% jump in its quarterly profit.
Gillette India's shares dipped 0.3% after the results. It rose 20.7% in the July-September quarter, compared with a 1.1% drop in the Nifty FMCG index.
($1 = 83.2575 Indian rupees)
