Gillette India soars 11% after posting strong quarterly earnings in Q2

Shares of Gillette India soared up to 11.54 per cent at Rs 9,537.70 per share on the BSE in Tuesday’s intraday trade. This came after the company delivered strong earnings in the first quarter of the financial year 2024-25 (Q2FY25). 

 

Gillette India reported a nearly 44 per cent increase in first-quarter profit, reaching Rs 133 crore ($15.8 million) for the quarter ending September 30, up from Rs 92.69 crore a year earlier. This growth was fueled by strong demand for its grooming products, including razors and shaving creams.

 

The company noted that new products, such as multi-blade systems and gel shaving creams, have attracted consumers, along with robust demand for its premium offerings. "The growth has been broad-based amidst continuing green shoots in rural markets," Gillette stated in a press release, highlighting that rural demand has strengthened due to increased government spending.

 

Revenue from the grooming segment, which comprises 83 per cent of Gillette India's total revenue, rose 23 per cent to Rs 649 crore. However, the company increased its advertising and promotion expenses by 11 per cent, contributing to a total expense growth of 11 per cent to Rs 612 crore.

 

In contrast, earlier this month, parent company Procter & Gamble Co reported an unexpected decline in quarterly sales as price-sensitive consumers in major markets like the US and China shifted to cheaper health and family care products.

 

The company has a total market capitalisation of Rs 30,378.55 crore. Its shares are trading at a price to earnings multiple of 61.66 times and at an earning per share of Rs 138.72. 

 

Gillette India is engaged in manufacturing and selling branded packaged fast moving consumer goods in the grooming and oral care businesses.

 

At 10:30 AM, the stock price of the company was up 7.88 per cent at Rs 673.80 a piece on the BSE. By comparison, the BSE’s Sensex surged 0.50 per cent to 79,608.40 level.