Gillette India (507815) Q4 96/97 earnings summary

Executive summary

• FY97 sales and other income reached Rs 121.16 crore, up 48% YoY; profit before interest and depreciation was Rs 21.25 crore, up 34%.

• Net profit after tax was Rs 5.15 crore after Rs 85.57 lakh in VRS/realignment costs and Rs 71 lakh tax provision; the Board recommended a 17.5% dividend.

Financial highlights

• Sales were Rs 119.76 crore vs Rs 83.30 crore; total income was Rs 121.16 crore vs Rs 84.57 crore.

• Profit before extraordinary items was Rs 6.72 crore vs Rs 4.35 crore; VRS/realignment costs were Rs 85.57 lakh vs Rs 68.44 lakh.

• Profit after tax was Rs 5.15 crore vs Rs 3.66 crore; reported EPS after VRS/realignment was Rs 4.56 vs Rs 2.85.

Outlook and guidance

• Duracell-branded alkaline battery distribution arrangements were finalized after the December 1996 Gillette-Duracell merger; management expected the new business to accelerate growth.

• Management expected current-year growth to continue, supported by a new-product launch calendar and ongoing expansion of distribution into smaller towns and villages.

• The growth-oriented Union Budget, import-export liberalization and lower interest rates were expected to support economic growth and future performance.