Gillette India Ltd. delivered robust financial performance in Q1, with standalone net profit rising 9.5% year-on-year to ₹160 crore compared to ₹146 crore in the corresponding quarter last year. According to the latest regulatory filing, the Procter & Gamble-owned grooming products maker achieved this growth despite facing margin pressures from increased operational expenses. The company reported profit before tax (PBT) of ₹214.02 crore, up from ₹195.43 crore in the year-ago period, demonstrating strong operational efficiency.
The company demonstrated strong top-line growth with revenue from operations increasing 10.8% to ₹783 crore during the quarter ended June 30, up from ₹707 crore in the year-ago period. As reported in the latest filing, total income rose to ₹788.24 crore from ₹713.40 crore on a year-on-year basis, with total segment results improving to ₹211.16 crore compared with ₹190.34 crore in the corresponding quarter last year. This double-digit revenue growth helped drive the overall profit expansion even as the company navigated operational challenges.
The grooming business, Gillette India's largest division, generated revenue of ₹628.7 crore, up from ₹576.9 crore a year ago, with the segment accounting for more than 80% of total revenue. The smaller oral care business reported revenue of ₹154.4 crore, compared with ₹129.8 crore in the corresponding quarter last year, showing nearly 19% growth. According to the exchange filing, these segment-wise results demonstrate the company's diversified product portfolio performance during the quarter, with the grooming segment's strong performance contributing significantly to overall revenue growth.
While profitability increased, EBITDA rose 8.4% to ₹228 crore compared to ₹210.5 crore in the previous year, but EBITDA margin narrowed to 29.1% from 29.7% year-on-year. According to the company's financial results approved by the board on July 30, the margin compression was attributed to higher operating expenses that offset the revenue growth benefits. The company's earnings per share (EPS) increased to ₹48.93 from ₹44.71 a year earlier, reflecting improved profitability per share despite margin pressures. Expenses rose 10.9% due to higher raw material costs, impacting overall profitability despite strong revenue growth.
Despite reporting strong quarterly results, Gillette India shares fell 1.8% to ₹7,750 in intraday trading, with the stock down from its previous close of ₹7,892. The stock has been down more than 26% over a year despite recent marginal gains, making its monthly return rise 1.7%. The market reaction suggests investor concerns about the margin compression despite steady demand for grooming products. The company attributed its performance to the strength of its strategic product portfolio, innovation aimed at evolving consumer needs, and strong retail execution across channels, with Managing Director Kumar Venkatasubramanian emphasizing focus on portfolio strength and execution for future growth opportunities.
