Personal care products maker Gillette India Ltd (GIL) today posted 51.45 per cent dip in net profit for the third quarter ended March 31 at Rs 20.73 crore on the back of high advertising spends.
In the same period last year, the company’s net profit was Rs 42.70 crore, Gillette said in a filing to the Bombay Stock Exchange.
GIL’s net sales for the three month period under review, however, grew 18.61 per cent at Rs 263.11 crore compared to Rs 221.81 crore during the quarter ended March 31, 2010.
“There has been a substantial increase in advertising and sales promotion expenses,” the filing said.
GIL spent Rs 72.68 crore on advertising and sales promotion during the three months ended March 31, 2011, compared to Rs 42.16 crore in the same period last year.
“GIL during the review period, also continued to make significant investments towards building capabilities by expanding store coverage and focusing on increasing volumes,” the company said in a statement.
These strategic investments are reflected in the strong topline and category growth, but have impacted the PAT for the quarter, it added.
For the nine-month period ended March 31, 2011, GIL’s net profit declined 29.41 per cent at Rs 83.64 crore, compared to Rs 118.49 crore in the same period last year.
Net sales during the nine month period under review grew 27.22 per cent at Rs 764.58 crore, compared to Rs 600.95 crore in the same period ended March 2010.
The company manufactures grooming and personal care products such as blades, razors, toiletries and tooth brushes.
GIL’s scrips closed at Rs 1,881 per share, down 0.47 per cent from the previous close on the Bombay Stock Exchange. – PTI