Gillette India (507815) Q4 98/99 earnings summary

Executive summary

• FY1999 sales grew over 25% to Rs.250.00 crore; PBT reached Rs.33.10 crore, with reported annualized PBT growth over 57%.

• SensorExcel and Presto volumes rose 53%; Gillette Series products, disposable razors, Braun and Oral Care also contributed to growth.

• The board proposed merging Wilkinson Sword India and Duracell India effective January 1, 2000, subject to shareholder, court and regulatory approvals.

Financial highlights

• Sales were Rs.25,000.29 lakh and total income Rs.25,374.37 lakh for the 12 months ended December 31, 1999; the comparison period covered nine months.

• PBT was Rs.3,309.57 lakh and PAT Rs.1,942.57 lakh, after a Rs.1,367.00 lakh tax provision; prior-period PAT was Rs.1,309.90 lakh after Rs.260.00 lakh tax provision.

• Proposed dividend rose to Rs.3 per share, or 30%, from 22% for the prior nine-month period.

Outlook and guidance

• Directors expected steady growth across product categories and continued improvement in performance during 2000.

• The Bhiwadi blade-process upgrade was expected to finish by July 2000, with a projected total cost of Rs.53.70 crore.