P&G Q4 net rises 21.5 per cent

29 August 2006

P&G Hygiene and Healthcare Limited has reported 4th quarter and full year 2005-06 which are in line with market expectations. The company's bottom line growth was helped by a reduction in operating costs and higher other income.

The results are not strictly comparable as the company transferred its detergent manufacturing business to an unlisted group company with effect from 1 October, 2005.

For the 4th quarter ended 30 June, 2006, P&G India has reported a net profit of Rs46.56 crore – an increase of 21.38 per cent over Rs38.36 crore reported for the same quarter of previous year. Total sales revenues declined 34.23 per cent to Rs112.9 crore from Rs171.66 crore.

Operating profits, excluding other income, remained unchanged as compared to the previous year quarter. Operating margins as a percentage of net sales improved substantially to 22.52 per cent from 14.84 per cent for the previous year quarter.

Input costs declined 58.63 per cent over the previous year quarter, much sharper than the decline in sales revenues. Advertising costs declined 25.05 per cent while royalty expenses increased 22.87 per cent. Staff costs went down by 12.93 per cent and other expenses were lower by 20.73 per cent.

Depreciation charges more than halved while tax provisions for the quarter went up by 21.57 per cent. A 26.87 per cent increase in other income to Rs42.97 crore from Rs33.87 crore for the previous year quarter helped the bottom line growth considerably.