For the
quarter ending March 2022, standalone net sales (including other operating income) of Gillette India has increased 5.57% to Rs 566.52 crore compared to quarter ended March 2021.
Operating profit margin has declined from 26.20% to 23.24%, leading to 6.37% decline in operating profit to Rs 131.66 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 13.88% to 27.63%. Purchase of finished goods cost fell from 24.65% to 20.19%. Employee cost decreased from 8.00% to 6.99%. Other expenses fell from 25.30% to 22.35%. Selling and administration expenses fell from 11.38% to 11.27%. Other income fell 93.82% to Rs 1.3 crore. PBIDT fell 17.74% to Rs 132.96 crore. Provision for interest up 1,027.66% to Rs 5.3 crore. PBDT fell 20.79% to Rs 127.66 crore. Provision for depreciation rose 18.01% to Rs 17.63 crore. Profit before tax down 24.75% to Rs 110.03 crore. Provision for tax was expense of Rs 40.72 crore, compared to Rs 40.56 crore. Effective tax rate was 37.01% compared to 27.74%. Profit after tax fell 34.40% to Rs 69.31 crore. Promoters’ stake was 75.00% as of 31 March 2022 ,compared to 75.00% as of 31 March 2021 .
For year-to-date (YTD) results analysis
Net sales (including other operating income) of Gillette India has increased 8.25% to Rs 1,703.27 crore. Operating profit margin has declined from 25.94% to 21.77%, leading to 9.16% decline in operating profit to Rs 370.79 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 23.04% to 27.52%. Purchase of finished goods cost fell from 23.13% to 21.39%. Employee cost decreased from 6.82% to 6.74%. Other expenses rose from 21.19% to 22.85%. Selling and administration expenses rose from 10.30% to 11.72%. Other income fell 78.03% to Rs 6.22 crore. PBIDT fell 13.63% to Rs 377.01 crore. Provision for interest up 202.99% to Rs 8.12 crore. PBDT fell 14.97% to Rs 368.89 crore. Provision for depreciation rose 18.24% to Rs 49.78 crore. Profit before tax down 18.54% to Rs 319.11 crore. Provision for tax was expense of Rs 97.37 crore, compared to Rs 108.87 crore. Effective tax rate was 30.51% compared to 27.79%.Profit after tax fell 21.61% to Rs 221.74 crore. Promoters’ stake was 75.00% as of 31 March 2022 ,compared to 75.00% as of 31 March 2021 .
Full year results analysis
Net sales (including other operating income) of Gillette India has increased 19.68% to Rs 2,009.42 crore. Sales of Grooming segment has gone up 19.62% to Rs 1,535.35 crore (accounting for 76.41% of total sales). Sales of Oral Care segment rose 19.87% to Rs 474.07 crore (accounting for 23.59% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 38.89% to Rs 424.06 crore. PBIT of Grooming segment rose 41.86% to Rs 372.62 crore (accounting for 87.87% of total PBIT). PBIT of Oral Care segment rose 20.61% to Rs 51.44 crore (accounting for 12.13% of total PBIT). PBIT margin of Grooming segment rose from 20.46% to 24.27%. PBIT margin of Oral Care segment rose from 10.78% to 10.85%. Overall PBIT margin rose from 18.18% to 21.10%. Operating profit margin has jumped from 21.38% to 22.92%, leading to 28.26% rise in operating profit to Rs 460.50 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 13.00% to 23.80%. Purchase of finished goods cost fell from 33.17% to 20.54%. Employee cost increased from 6.99% to 7.06%. Other expenses rose from 25.76% to 25.89%. Selling and administration expenses rose from 11.95% to 13.01%. Other income up 177.85% to Rs 31.73 crore. PBIDT rose 32.87% to Rs 492.23 crore. Provision for interest fell 3.49% to Rs 5.25 crore. Loan funds remained nil. Inventories rose to Rs 366.58 crore as of 30 June 2021 from Rs 284.27 crore as of 30 June 2020. Sundry debtors were higher at Rs 197.94 crore as of 30 June 2021 compared to Rs 190.67 crore as of 30 June 2020. Cash and bank balance declined from Rs 232.48 crore as of 30 June 2020 to Rs 166.32 crore as of 30 June 2021. PBDT rose 33.41% to Rs 486.98 crore. Provision for depreciation rose 12.67% to Rs 57.52 crore. Fixed assets increased to Rs 381.81 crore as of 30 June 2021 from Rs 317.65 crore as of 30 June 2020. Profit before tax grew 36.78% to Rs 429.46 crore. Provision for tax was expense of Rs 119.08 crore, compared to Rs 83.79 crore. Effective tax rate was 27.73% compared to 26.69%. Profit after tax rose 34.84% to Rs 310.38 crore. Promoters’ stake was 75.00% as of 30 June 2021 ,compared to 75.00% as of 30 June 2020 . Cash flow from operating activities increased to Rs 443.16 crore for year ended June 2021 from Rs 225.22 crore for year ended June 2020. Cash flow used in acquiring fixed assets during the year ended June 2021 stood at Rs 91.83 crore, compared to Rs 35.55 crore during the year ended June 2020.
Other Highlights
During the
quarter ending march 2022, Profit After Tax (PAT) went down around 34% to Rs
69.3 crore on YoY basis, driven by a retrospective tax law change in the
current quarter, one-time tax related help and lower marketing spending in the
base period .
Management Comments :
Madhusudan
Gopalan, Managing Director, Gillette India Ltd. said, “In a challenging market
environment, we recorded robust sales growth during the quarter driven by the
strength of our grooming and oral care product portfolio and strong retail
execution. We will focus on improving productivity to minimize the effect of
commodity cost inflation which is expected to impact the industry in short to
medium term. In the long-term, we will stay the course on our strategy to drive
balanced top and bottom-line growth enabled by superiority, improving
productivity, leading constructive disruption, and strengthening our
organization and culture.”
| Gillette India : Standalone Results | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) | 202106 | 202006 | Var.(%) |
|---|
| Net Sales (including other operating income) | 566.52 | 536.62 | 5.57 | 1,703.27 | 1,573.44 | 8.25 | 2,009.42 | 1,679.06 | 19.68 | | OPM (%) | 23.24 | 26.20 | -296 bps | 21.77 | 25.94 | -417 bps | 22.92 | 21.38 | 153 bps | | OP | 131.66 | 140.61 | -6.37 | 370.79 | 408.19 | -9.16 | 460.50 | 359.04 | 28.26 | | Other Inc. | 1.30 | 21.02 | -93.82 | 6.22 | 28.31 | -78.03 | 31.73 | 11.42 | 177.85 | | PBIDT | 132.96 | 161.63 | -17.74 | 377.01 | 436.50 | -13.63 | 492.23 | 370.46 | 32.87 | | Interest | 5.3 | 0.47 | 1,027.66 | 8.12 | 2.68 | 202.99 | 5.25 | 5.44 | -3.49 | | PBDT | 127.66 | 161.16 | -20.79 | 368.89 | 433.82 | -14.97 | 486.98 | 365.02 | 33.41 | | Depreciation | 17.63 | 14.94 | 18.01 | 49.78 | 42.1 | 18.24 | 57.52 | 51.05 | 12.67 | | PBT | 110.03 | 146.22 | -24.75 | 319.11 | 391.72 | -18.54 | 429.46 | 313.97 | 36.78 | | PBT before EO | 110.03 | 146.22 | -24.75 | 319.11 | 391.72 | -18.54 | 429.46 | 313.97 | 36.78 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 110.03 | 146.22 | -24.75 | 319.11 | 391.72 | -18.54 | 429.46 | 313.97 | 36.78 | | Taxation | 40.72 | 40.56 | 0.39 | 97.37 | 108.87 | -10.56 | 119.08 | 83.79 | 42.12 | | PAT | 69.31 | 105.66 | -34.40 | 221.74 | 282.85 | -21.61 | 310.38 | 230.18 | 34.84 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 69.31 | 105.66 | -34.40 | 221.74 | 282.85 | -21.61 | 310.38 | 230.18 | 34.84 | | EPS (Rs)* | 21.27 | 32.42 | -34.40 | 68.04 | 86.79 | -21.61 | 95.24 | 70.63 | 34.84 | | | * EPS is on current equity of Rs 32.59 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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