Gillette India's Q2 profit rises on better demand

Gillette India

30/01/2024 09:25

Gillette India  GILE.NS , known for its shaving razors and Oral B toothbrushes, posted a 39.6% rise in its
second-quarter profit on Tuesday, helped by increased demand and launch of more premium products.
    Gillette India, in which consumer goods giant Procter & Gamble Co  PG.N  holds a majority stake, reported a profit
of 1.04 billion rupees ($12.5 million) for the three months ended Dec. 31, compared with 744.5 million rupees a year
earlier. 
    Its revenue from operations rose 3.4% for the quarter. 
    Gillette India also declared an interim dividend of 85 rupees per share for the financial year 2023-24, which
includes a one-time special dividend of 40 rupees per share.
    For further results highlights, click here:  urn:newsml:reuters.com:*:nFWN3EK0JV

    KEY CONTEXT
    
    Gillette is capitalising on the changing consumer preferences in India in recent years, as a significant number of
consumers, particularly the rising middle-class, favour branded products over unbranded local alternatives.
    The surge in the company's second-quarter profit follows a single-digit growth in the previous quarter.
    Rival Colgate-Palmolive (India)  COLG.NS  reported a 35.7% jump in the December-quarter profit, aided by healthy
urban demand and a fall in expenses.
    
    
        PEER COMPARISON
                                   Valuation (next     Estimates (next 12                Analysts' sentiment
                                     12 months)             months)          
                       RIC        PE      EV/EBITDA  Revenue      Profit     Mean      # of      Stock to       Div
                                                     growth       growth     rating*   analysts  price          yield
                                                                                                 target**       (%)
 Gillette India Ltd     GILE.NS    50.29      31.76     11.21       17.20    Strong           1      0.88           1.31
                                                                             Buy                                
 Colgate-Palmolive      COLG.NS    50.07      34.05     8.09        10.97    Hold            28      1.10           1.70
 (India) Ltd                                                                                                    
 Hindustan Unilever     HLL.NS     50.90      35.33     6.80        9.37     Buy             19      0.89           1.64
 Ltd                                                                                                            
 Marico Ltd             MRCO.NS    41.20      29.39     8.49        10.06    Buy             38      0.88           0.87
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT

 OCTOBER-DECEMBER STOCK PERFORMANCE
    
    
    
 
    -- All data from LSEG
        -- $1 = 83.1217 Indian rupees

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 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Dhanya Ann Thoppil and Mrigank Dhaniwala)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))