FMCG giant Gillette India shares are down 1.8% at Rs 7,750 in intraday trade, with a slight dip in operating margins overshadowing higher June-quarter revenue and profit.
Investors are assessing Gillette India's June quarter earnings after the FMCG major reported a rise in revenue and profit, although the stock traded lower in early deals as margins narrowed on a year-on-year basis.
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The stock is trading at Rs. 7,750 apiece on the NSE, down 1.8% from its previous close of Rs. 7,892.
Profit, Revenue Rise In Q1
Gillette India reported a 9.5% year-on-year increase in net profit to Rs 160 crore for the quarter ended June, compared with Rs 146 crore in the corresponding period last year.
Revenue from operations rose 10.8% to Rs 783 crore, up from Rs 707 crore a year earlier, reflecting steady business growth during the quarter.
Operating performance also improved, with Ebitda increasing 8.4% year-on-year to Rs 228 crore, compared with Rs 210 crore in the year-ago period.
Also Read: Gillette India Q1 Results: Profit Rises 10%; Sales Growth Offsets Margin Pressure
Margins Slip Despite Earnings Growth
Despite higher operating profit, profitability margins softened during the quarter. Ebitda margin came in at 29.1%, compared with 29.7% in the corresponding quarter last year.
The moderation in margin suggests that while the company delivered healthy top-line and bottom-line growth, operating costs rose at a faster pace than revenue.
26.6% down over a year
The stock has been down more than 26% over a year now, despite its recent marginal gains, which made its monthly return rise 1.7%.
The company had a market capitalisation of Rs 25,383.8 crore as at the end of the previous trading session, while it is currently trading at a price-to-earnings multiple of 39.3 times.
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