BackGillette India net down 51.45% at ₹20.73 crore
Gillette India net down 51.45% at ₹20.73 crore
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New Delhi: Personal care products maker Gillette India Ltd (GIL) on Monday posted 51.45% dip in net profit for the third quarter ended 31 March at ₹ 20.73 crore on the back of high advertising spends.
In the same period last year, the company’s net profit was ₹ 42.70 crore, Gillette said in a filing to the Bombay Stock Exchange.
GIL’s net sales for the three month period under review, however, grew 18.61% at ₹ 263.11 crore compared to ₹ 221.81 crore during the quarter ended 31 March, 2010.
“There has been a substantial increase in advertising and sales promotion expenses," the filing said.
GIL spent ₹ 72.68 crore on advertising and sales promotion during the three months ended 31 March, 2011, compared to ₹ 42.16 crore in the same period last year.
“GIL during the review period, also continued to make significant investments towards building capabilities by expanding store coverage and focusing on increasing volumes," the company said in a statement.
These strategic investments are reflected in the strong topline and category growth, but have impacted the PAT for the quarter, it added.
For the nine month period ended 31 March, 2011, GIL’s net profit declined 29.41% at ₹ 83.64 crore, compared to ₹ 118.49 crore in the same period last year.
Net sales during the nine month period under review grew 27.22% at ₹ 764.58 crore, compared to ₹ 600.95 crore in the same period ended March 2010.
The company manufactures grooming and personal care products such as blades, razors, toiletries and tooth brushes.
GIL’s scrips closed at ₹ 1,881 per share, down 0.47% from the previous close on the Bombay Stock Exchange.
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