Gillette India net down 51.45% at 20.73 crore

Gillette India net down 51.45% at 20.73 crore

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.