India's Procter & Gamble Hygiene falls on lower Q1 profit, margin concerns

Procter & Gamble Hygiene and Health Care

29/08/2024 07:19

** Shares of Procter & Gamble Hygiene & Health Care
 PROC.NS  drop 3% to 16,507.8 rupees, set for worst session in
about four months
    ** Consumer goods co's net profit drops 46.4% Y/Y to 810.6
mln rupees ($9.7 mln) in June quarter
    ** EBITDA margin halves to 12.66% from 25.20% a year ago,
according to Reuters calculations
    ** "Operating profit declined 38% while profit margins
contracts to lowest in 12 quarters, due to sharp rise in
employee costs and ad spending," says Motilal Oswal
    ** Reiterates "neutral" rating, cuts EPS estimates by 9% and
6% for FY25 and FY26, respectively
    ** Says, PROC trades at expensive valuations and there are
no major positive triggers in medium-term
    ** PROC down 4.6% YTD, underperforming consumer index
 .NIFTYFMCG  which is up 10.3%


($1 = 83.8775 Indian rupees)

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))