Procter & Gamble Hygiene & Health Care Ltd. (PGHH) registered a 29% (YoY) jump in its profit after tax to Rs 174 m on the turnover of Rs 1.3 bn for the 3QFY00.
PGHH recorded an improved financial performance because of a strong growth in its feminine care business, exports sales growth and an ongoing cost reduction drive. As a result company's operating profit margins improved to 19.8% in 3QFY00 as against 18.5% in 3QFY99.
PGHH's feminine care business is growing behind the launch of Whisper Ultra which is the most technologically advanced product in the category. In the healthcare business the company has initiated several initiative including relaunch of Vicks Cough Drops and a drive against counterfeit/pass off products.
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In the feminine care market PGHH faces stiff competition from HLL and Johnson & Johnson. However due to the premium quality offered by it, PGHH enjoys an edge over the other players.
At the current market price of Rs 552, PGHH trades at a P/E of 17.2 times its 3QFY00 annualised earnings. In the past the company has enjoyed P/E in the range of 35-40 times. Due to overdependence on two products, stiff competition and shifting perception of the investors towards ICE stocks, its valuations are eroded considerably in the past few months.
Procter & Gamble Hygiene and Health Care has announced the first quarter results of the financial year ended June 2017 (1QFY17). The company's sales rose by 12.5%YoY while net profit rose by 50.1% YoY during the quarter.
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