Gillette India Reports 11% Profit Growth in Second Quarter Driven by Sales and Productivity

Gillette India Ltd reported a net profit of ₹49.1 crore for the second quarter ended September 30, marking an 11% increase compared to ₹44.2 crore in the same period last year. This growth was propelled by a 3.7% rise in revenue to ₹810.8 crore, up from ₹781.8 crore year-on-year. The company also achieved a 9.1% growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), reaching ₹207.7 crore from ₹190.4 crore. This led to an expansion of the EBITDA margin to 25.6% from 24.4% previously. Sales increased by 4% to ₹811 crore, attributed to robust brand fundamentals, positive consumer reception to new products, and effective retail execution. Kumar Venkatasubramanian, Managing Director, highlighted the company's commitment to its integrated growth strategy focused on product superiority, productivity, and organizational agility to ensure sustainable value creation.

Impact This positive financial performance is likely to be viewed favorably by investors, potentially boosting investor confidence in Gillette India's stock. It signals operational efficiency and market strength within the Fast-Moving Consumer Goods (FMCG) sector, particularly in the personal care segment. The company's ability to innovate and execute well at retail suggests a competitive edge. Impact rating: 6/10

Difficult Terms: EBITDA: Stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, indicating profitability before accounting for financing decisions, accounting decisions, and tax environments. EBITDA Margin: This is calculated by dividing EBITDA by total revenue. It shows how efficiently a company is converting revenue into operating profit, expressed as a percentage.