X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Gillette India: Got 'nicked' this time too! - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 25, 2001

    Gillette India: Got 'nicked' this time too!

    Gillette India has posted a net loss of Rs 6 m (excluding extraordinary VRS expenses)for the quarter ended September 30, 2001 as compared to a net profit of Rs 56 m in the previous year. However, the figures are not comparable as in September quarter last year the effect of Gillette's merger with Duracell and Wilkinson was not accounted for. As per the company's release, taking the merger effect, Gillette India posted Rs 14 m loss for the quarter ended September 30, 2000.

    (Rs m) 3QFY01 3QFY02 Change 9m FY01 9m FY02 Change
    Net Sales 731 1,325 81.4% 2,081 3,426 64.6%
    Other Income 25 71 189.1% 105 102 -2.5%
    Expenditure 613 1,316 114.6% 1,826 3,211 75.9%
    Operating Profit (EBDIT) 118 9 -92.1% 256 216 -15.6%
    Operating Profit Margin (%) 16.1% 0.7%   12.3% 6.3%  
    Interest 19 34 79.1% 49 92 87.1%
    Depreciation 32 72 125.4% 85 219 158.1%
    Profit before Tax 91 -25   227 7 -96.7%
    Tax 35 -20   82 -16  
    Extraordinary expenses (VRS)   30     30  
    Profit after Tax/(Loss) 56 -36   145 -6  
    Net profit margin (%) 7.7% -2.7%   6.9% -0.2%  
    No. of Shares (eoy) (m) 12.9 32.6   12.9 32.6  
    Diluted Earnings per share* 6.9 -4.4   5.9 -0.3  
    *(annualised)            

    The comparative result table given above has last year's figures of only Gillette and not of the consolidated company (including Duracell and Wilkinson). So, the results are not strictly comparable. However, a look at the figures above does bring out the merger blues being faced by Gillette India. The company's depreciation and interest figures have zoomed and so has its operating expenditure.

    Though the sales show an increase of 81% YoY, actually, the company's total income has increased from Rs 1,308 m in 3QFY01 to Rs 1,396 m in 3QFY02 (up 7% YoY) if the merger effect for both years' is considered.

    On a nine month consolidated basis, Gillette India has posted a net profit of Rs 24 m (excluding extraordinary VRS expenses).

    Gillette India has yet to get a hold on its operating expenses. The company has yet to come to terms with the merger. Though Wilkinson has given the company access to lower end blade market, the margins are lower there. Also, Duracell is facing difficulties due to the chinese imported cells (contraband) that are much cheaper. The company seems to be in a restructuring phase and it would take some time for Gillette to get its act together.

    Despite the pressure the company is facing, the stock is still trading at Rs 270. This is probably because Gillette has strong brands (Gillette and 7'0 Clock) and the parent has shown in the past that India is an important market for them and going forward investors expect the company to get its act together. Though there may be some weight in that reasoning, there should be some improvement taking place in the numbers before one commits to the stock. In short, Gillette India has yet to prove that it can get out of this rut unscathed.

     

     

    Equitymaster requests your view! Post a comment on "Gillette India: Got 'nicked' this time too!". Click here!

      
     

    More Views on News

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    GILLETTE INDIA SHARE PRICE


    Aug 21, 2017 10:25 AM

    TRACK GILLETTE INDIA

    • Track your investment in GILLETTE INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON GILLETTE INDIA

    GILLETTE INDIA - HYPERMARCAS COMPARISON

    Compare Company With Charts

    COMPARE GILLETTE INDIA WITH

    MARKET STATS