Gillette India Dec quarter net dips 12%

Due to the weakening of the Indian Rupee and higher investment on advertising and sales promotion expenses in the quarter, FMCG player Gillette recorded a dip in its net profit growth (consolidated) of Rs 27 crore for its second quarter ending December 31, 2008 -- a 12 per cent decline over the Rs 31 crore for the corresponding quarter in the previous year.

The company's accounting year ends on June 30.

The stock price rose 1.46 per cent to close at Rs 710 on the BSE.

The revenue of the group which has products like Oral care brand, ‘Oral B’ and grooming products like razors grew 12 per cent to touch Rs 163 crore as compared to Rs 145 crore for the same quarter a year ago. "New and innovative products in the oral care category have been a stimulant for increasing value share by over 100 per cent in the last two years. There was positive growth for both Mach 3 Turbo and Vector Plus also," said Santana Kola, Managing Director, and Gillette India.

On a sequential (compared to the trailing quarter) basis, the company's net profit rose 35 per cent from Rs 20 crore. Its revenue grew 14 per cent Quos.

"Profits for the quarter are lower due to weakening Rupee and higher marketing investment; we expect this to be corrected and improve in the second half of the year subject to stable macro-economic environment," Kola said.