Gillette India profit declines in Q3 amid intense competition

Gillette India earnings: Gillette India reported a nearly 4 per cent decline in third-quarter profit on Monday, attributing the dip to heightened competition within the domestic market, which dampened demand for its products.

Known for its Mach 3 brand of shaving razors, Gillette India disclosed a profit of Rs 99.09 crore for the January-March quarter, down from Rs 103 crore recorded a year earlier.

The consumer goods landscape has become increasingly competitive, with smaller manufacturers gaining traction due to their ability to secure shelf space amid declining commodity prices. This intensified competition has posed challenges for established players like Gillette India.

Despite the profit decline, Gillette India witnessed a rise in revenue from its core grooming segment, which accounts for 82 per cent of its total revenue. Revenue in this segment increased by nearly 14 per cent to 5.58 billion rupees. Additionally, the company benefited from a 6.3 per cent reduction in the cost of raw materials consumed.

Parent company Procter & Gamble Co had recently revised its annual core profit forecast upwards in April, driven by price hikes and sustained demand in the market.

Ahead of the results announcement, Gillette India's shares witnessed a slight decline of 0.8 per cent. However, the stock had shown resilience in the March quarter, rising by 1.2 per cent despite a 5.3 per cent fall in the Nifty FMCG index.

(With Reuters inputs)