Gillette India skids after Q3 PAT tumbles 40% YoY

Gillette India fell 1.13% to Rs 4,934.50 after net profit slumped 40.31% to Rs 52.38 crore on a 12.66% drop in net sales to Rs 406.57 crore in Q3 March 2020 over Q3 March 2019.

Standalone profit before tax declined 48.03% to Rs 70.75 crore in Q3 March 2020 as against Rs 136.16 crore in Q3 March 2019. Current tax expenses for Q3 March 2020 slipped 70.07% to Rs 16.16 crore as compared to Rs 54 crore incurred in Q3 March 2019. The result was announced during market hours yesterday, 7 May 2020.

The profit was impacted due to higher advertising and innovation spends. Advertising & sales promotion expenses surged 72.70% to Rs 51.69 crore YoY in Q3 March 2020.

The company had forecasting sales growth of mid-single digit for the quarter before the lockdown. But following the nationwide lockdown to contain the spread of COVID-19, the business operations were severely disrupted across the country. However, grooming and oral care businesses continued to grow market share during the quarter and are currently at their historical high shares.

Commenting on the Q3 result, Madhusudan Gopalan, the managing director of Gillette India, has said that, "During this unprecedented crisis, our organization has been focusing on protecting the health and safety of each other, serving the Indian consumers with our personal hygiene products which become critical now more than ever, and to support communities in need through our relief efforts. In the near-term, we will focus on scaling up our operations to maximize the availability of our products to meet consumer needs, while following health and safety guidelines by the government authorities."

"With the strength of our product portfolio, we are well positioned to serve the needs of our consumers by offering superior propositions and value across different price segments. We are also stepping up to be a force for good through our COVID-19 response and relief program 'P&G Suraksha India' where we are supporting government and relief organizations through in-kind, product and critical supplies donations, and creating awareness about preventive measures to combat the spread of COVID-19," he added.

Gillette India is engaged in the manufacturing and sale of branded packaged fast moving consumer goods in the grooming, portable power and oral care businesses. The firm's segments are: grooming, portable power and oral care.

Powered by Capital Market - Live News