InvestorQ : How did you find the quarterly results of Gillette India for the Sep-21 quarter?
Arya Nanda made post

How did you find the quarterly results of Gillette India for the Sep-21 quarter?

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Khushi Patel answered.
1 month ago
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Gillette India reported 11.02% growth in sales at Rs.573.31 crore for the Sep-21 quarter, which happens to be the first quarter for Gillette since it follows June year ending. On a sequential basis, revenues were 31.5% higher. While the larger Grooming vertical saw revenues grow by 6.8% yoy at Rs.423 crore, the much smaller Oral Care vertical saw sales grow by 24.8% to Rs.151 crore.

However, input pressure costs ensured that profit fell on a yoy basis. Net profits for the quarter were lower by -14% at Rs.81.9 crore on a yoy basis. Sequential profits were up more than 3-fold. The lower profits compared to the year ago period was triggered by higher raw material cost as well as higher promotion and advertisement costs.

Just to give an example, the sales grew by just about 11% yoy but the raw material costs were up 31% yoy while the advertisement and promotion costs were up 50% over the previous year comparable quarter. As a result, the net margins at 14.29% in Sep-21 quarter was below the NPM of 18.45% in Sep-20 quarter but substantially better than 6.31% in Jun-21 quarter. 

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