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P&G: Focus paying off

Nov 13, 2001

P&G Hygiene & Healthcare Limited (P&G), continues to face difficult market conditions due to the economic sluggishness. In the recently declared September quarter results the company recorded a 3% decline in topline YoY.

(Rs m) 1QFY01 1QFY02 Change
Net Sales 1,201 1,161 -3.3%
Other Income 14 32 127.7%
Expenditure 920 868 -5.6%
Operating Profit (EBDIT) 281 293 4.1%
Operating Profit Margin (%) 23.4% 25.2%  
Interest 1 0  
Depreciation 73 63 -13.4%
Profit before Tax 221 261 18.4%
Tax 35 65 85.0%
Profit after Tax/(Loss) 185 196 5.8%
Net profit margin (%) 15.4% 16.9%  
No. of Shares (eoy) (m) 21.6 21.6  
Earnings per share* 34.3 36.2  
Current P/e ratio   11.7  

But the performance was not all that bad considering that the company managed to control costs and thus increased its operating margins by 180 basis points to 25.2%. P&G's staff cost declined over 8% YoY and its raw material costs were also pruned by nearly 8%.

Cost break-up
(Rs m) 1QFY01 1QFY02 Change
Raw material cost 437 403 -7.8%
Staff cost 93 85 -8.3%
Sales tax/excise 107 110 3.5%
Other expenses 284 270 -4.7%
Total expenditure 920 868 -5.6%

Lower depreciation and zero interest saw P&G's profit before tax improve by over 18%. However, higher taxes as a result of new deffered tax guidelines saw net profit grow marginally by 6%. But on the whole it was a satisfactory performance considering the difficult market conditions and the company's two-product strategy (Vicks and Whisper).

At the current price of Rs 424 the stock trades at a P/E of 13x our projected FY02 earnings estimates. Given the company's focus on operational efficiencies, the valuation is on the lower side. This is probably because of the company's two product dependence as well as concerns regarding the parent's 100% subsidiaries. But apart from this, the company is likely to be one of the key players in both anti-cold and feminine hygiene segment. The company's dividend payout is also attractive.

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P&G HYGIENE Announces Quarterly Results (3QFY20); Net Profit Up 9.5% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, P&G HYGIENE has posted a net profit of Rs 1 bn (up 9.5% YoY). Sales on the other hand came in at Rs 9 bn (up 5.0% YoY). Read on for a complete analysis of P&G HYGIENE's quarterly results.

P&G HYGIENE Announces Quarterly Results (2QFY20); Net Profit Down 5.0% (Quarterly Result Update)

Nov 11, 2019 | Updated on Nov 11, 2019

For the quarter ended September 2019, P&G HYGIENE has posted a net profit of Rs 1 bn (down 5.0% YoY). Sales on the other hand came in at Rs 9 bn (up 7.6% YoY). Read on for a complete analysis of P&G HYGIENE's quarterly results.

P&G HYGIENE 2017-18 Annual Report Analysis (Annual Result Update)

Dec 31, 2018 | Updated on Dec 31, 2018

Here's an analysis of the annual report of P&G HYGIENE for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of P&G HYGIENE. Also includes updates on the valuation of P&G HYGIENE.

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