Gillette India Q3 Review - Mixed Bag; Limited Upside Leads To Rating Downgrade: Nirmal Bang

"BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Gillette India Ltd.’s Q3 FY22 (June-ending financial year) operating performance was ahead of our estimate even as sales came in lower than our estimate as the company reported better margins, led by lower operating costs. Profit after tax was down sharply YoY due to a retrospective tax law change in the quarter, one-time tax related help and lower marketing spends in the base period. As per the management, excluding these one-time tax items and the lower marketing spends in the base period, Gillette India's net profit was flat YoY. On the margin front, higher gross margin, along with increased savings than our estimate led to an Ebitda margin of 23.2% (versus our estimate of 20.6%). Spending on advertisement and sales promotion was up by 14.4% YoY on absolute basis (up 90 basis points YoY but down 110 bps QoQ as % of revenue). .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Gillette India Q3 Review - Mixed Bag; Limited Upside Leads To Rating Downgrade: Nirmal Bang