For
the quarter ending Sept 2023, standalone Net sales (including other operating income) of Gillette India has increased 7.68% to Rs 667.55 crore compared to quarter ended Sept 2022. Sales of Grooming segment has gone up 7.78% to Rs 527.47 crore (accounting for 79.02% of total sales). Sales of Oral Care segment rose 7.32% to Rs 140.08 crore (accounting for 20.98% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 0.02% to Rs 118.91 crore. PBIT of Grooming segment fell 6.41% to Rs 93.29 crore (accounting for 78.45% of total PBIT). PBIT of Oral Care segment rose 33.09% to Rs 25.62 crore (accounting for 21.55% of total PBIT).
PBIT margin of Grooming segment fell from 20.37% to 17.69%. PBIT margin of Oral Care segment rose from 14.75% to 18.29%. Overall PBIT margin fell from 19.18% to 17.81%.
Operating profit margin has declined from 21.90% to 20.48%, leading to 0.71% rise in operating profit to Rs 136.74 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.05% to 25.66%. Purchase of finished goods cost rose from 17.97% to 22.18%. Employee cost increased from 6.56% to 7.65%. Other expenses fell from 25.04% to 24.93%. Selling and administration expenses rose from 14.32% to 14.74%. Other income up 220% to Rs 8.64 crore. PBIDT rose 4.99% to Rs 145.38 crore. Provision for interest fell 73.47% to Rs 0.13 crore.
PBDT rose 5.27% to Rs 145.25 crore. Provision for depreciation rose 11.49% to Rs 20.09 crore.
Profit before tax grew 4.33% to Rs 125.16 crore. Provision for tax was expense of Rs 32.47 crore, compared to Rs 33.18 crore. Effective tax rate was 25.94% compared to 27.66%.
Profit after tax rose 6.81% to Rs 92.69 crore.
Promoters’ stake was 75.00% as of 30 September 2023 ,compared to 75.00% as of 30 September 2022 .
Full year results analysis
Net sales (including other operating income) of Gillette India has increased 9.79% to Rs 2,477.05 crore. Sales of Grooming segment has gone up 13.79% to Rs 1,960.62 crore (accounting for 79.15% of total sales). Sales of Oral Care segment fell 3.13% to Rs 516.43 crore (accounting for 20.85% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 9.92% to Rs 457.16 crore. PBIT of Grooming segment rose 11.66% to Rs 377.74 crore (accounting for 82.63% of total PBIT). PBIT of Oral Care segment rose 2.33% to Rs 79.42 crore (accounting for 17.37% of total PBIT).
PBIT margin of Grooming segment fell from 19.63% to 19.27%. PBIT margin of Oral Care segment rose from 14.56% to 15.38%. Overall PBIT margin rose from 18.43% to 18.46%.
Operating profit margin has jumped from 21.39% to 21.77%, leading to 11.75% rise in operating profit to Rs 539.18 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 26.43% to 27.50%. Purchase of finished goods cost rose from 19.64% to 20.26%. Employee cost increased from 6.71% to 6.88%. Other expenses fell from 25.66% to 23.51%. Selling and administration expenses fell from 12.90% to 11.82%. Other income up 186.56% to Rs 22.18 crore. PBIDT rose 14.51% to Rs 561.36 crore. Provision for interest fell 26.21% to Rs 7.77 crore. Loan funds remained nil. Inventories rose to Rs 412.35 crore as of 30 June 2023 from Rs 373.44 crore as of 30 June 2022. Sundry debtors were higher at Rs 320.16 crore as of 30 June 2023 compared to Rs 267.01 crore as of 30 June 2022. Cash and bank balance rose to Rs 455.56 crore as of 30 June 2023 from Rs 291.07 crore as of 30 June 2022.
PBDT rose 15.41% to Rs 553.59 crore. Provision for depreciation rose 18.04% to Rs 80.69 crore. Fixed assets declined from Rs 427.99 crore as of 30 June 2022 to Rs 421.90 crore as of 30 June 2023.
Profit before tax grew 14.97% to Rs 472.90 crore. Provision for tax was expense of Rs 117.22 crore, compared to Rs 122 crore. Effective tax rate was 24.79% compared to 29.66%.
Profit after tax rose 22.93% to Rs 355.68 crore.
Promoters’ stake was 75.00% as of 30 June 2023 ,compared to 75.00% as of 30 June 2022 .
Cash flow from operating activities increased to Rs 462.60 crore for year ended June 2023 from Rs 461.53 crore for year ended June 2022. Cash flow used in acquiring fixed assets during the year ended June 2023 stood at Rs 78.73 crore, compared to Rs 116.41 crore during the year ended June 2022.
Management Comments :
LV Vaidyanathan, Managing Director,
Gillette India said, “We have started the fiscal on a balanced note, with an
encouraging top-line and bottom-line growth. This sequential growth comes
behind strong execution of our integrated strategies of a focused product
portfolio, superiority, productivity, constructive disruption, and an agile and
accountable organization structure. We remain committed to these strategies in
the near-term, to continue driving a balanced top and bottom-line growth in a
competitive macro-economic environment.”