P&G Hygiene Shares Hit Two-Month Low After Net Profit Declines In June Quarter

Shares of Procter & Gamble Hygiene and Health Care Ltd. fell to their lowest in two months, after the company's fourth quarter net profit fell 46% year-on-year to Rs 81 crore.

The company's board also recommended a final dividend of Rs 95 per share, subject to shareholders' approval.

The company follows the July - June financial year.

"Despite a continually challenging operating and competitive environment, the company reported sales of Rs 4,192 crore, up 7% versus year ago, owing to innovation, premiumisation and driving category growth in the feminine hygiene category," it said in a press release.

The company's profit after tax was flat year-on-year at Rs 675 crore, driven by significant impact of one-time tax related items both in the base period and current period, it said.

• Revenue up 9.8% at Rs 932 crore vs Rs 849 crore.

• Ebitda down 44% at Rs 118 crore vs Rs 211 crore.

• Margin at 12.7% vs 24.85%, down 1,219 bps.

• Net profit down 46% at Rs 81 crore vs Rs 151 crore.

Shares of the company fell as much as 3.8%, the lowest level since June 27, before paring gains to trade 3% lower at Rs 16,490 apiece, as of 9:53 a.m. This compares to a 0.2% advance in the NSE Nifty 50.

The stock has fallen 5% year-to-date, but risen 3.2% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.53 times its 30-day average. The relative strength index was at 38.44.

Out of three analysts tracking the company, two maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.3%.