The shares of this FMCG stock, engaged in selling products like razors and blades, shaving gel, shaving cream jumped 18 percent intraday after the company announced a 21 percent year on year increase in its net profits in Q3 FY25.
Price Action
With a market capitalization of Rs 26,790.10 crore, Gillette India Limited surged 18 percent in Tuesday’s trading session and made an intraday high of Rs 8,790.75 per share compared to its previous closing price of Rs 7,454.80 per share. The stock reiterated from its day’s high and closed at Rs 8,221.55 which is 10 percent higher than the previous closing price.
What Happened
The shares of Gillette India Limited surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 7 percent year on year from Rs 639 crore to Rs 685 crore in Q3FY25. However, on a quarter-on-quarter basis, it fell 12 percent from Rs 782 crore in Q2FY25.
This was accompanied by a 21 percent year on year increase in net profits from Rs 104 crore to Rs 126 crore in Q3FY25. On a quarter-on-quarter basis, the net profits fell by 5 percent from Rs 133 crore.
Further, the EPS increased 15 percent year on year from Rs 31.91 to Rs 38.66. On a quarterly basis, the EPS declined by 10 percent from Rs 40.82.
Revenue Segment
The company’s grooming segment contributed to 83 percent or Rs 570 crores in revenue while the oral care segment accounted for 17 percent or Rs 114 crore of the entire revenue from operations.
Interim Dividend
Gillette India has also declared a 650 percent interim dividend with Tuesday set as ex-date. In an exchange filing on February 11, the company said “…the Board of Directors of the Company at its meeting held on February 10, 2025, have declared an interim dividend of Rs 65 per equity share of face value of Rs 10 each for the company’s financial year 2024-25,”.
The ex-date is when a stock starts trading without dividend entitlement, meaning investors must purchase it before this date to qualify for the payout. However, the company finalizes the list of eligible shareholders based on the record date.
Company Overview
Owned by the multi-national corporation Procter & Gamble (P&G), Gillette India Limited manufactures and sells branded FMCG products in grooming and oral care segments. Its grooming segment includes shaving systems, cartridges, blades, and toiletries, while the oral care segment focuses on toothbrushes and related products.
The company’s products are sold under renowned names like Gillette Guard, Fusion, and 7 O’clock Super Platinum for razors, along with blades such as Wilkinson and Vector 3. Its product range also includes shaving creams, gels, and aftershave products.
Written by Shwetha Sairam
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