P&G net profit rises 62 per cent: stock surges 7 per cent

Procter and Gamble Hygiene and Health Care (P&G) which follows July to June fiscal, announced its six month ending quarter results on Saturday. The FMCG major reported a 61.81 per cent year on year (YoY) jump in the net profit to Rs 146.7 crore for the second quarter ended December 31.

On financial front, the net revenue from operations of P&G reached to Rs 714 crores in Q2FY16 compared to Rs 645 crores in Q2FY15, an increase of 10.74 per cent YoY. The EBITDA stood at Rs 216 crores this quarter compared to Rs 128 crores in Q2FY15, an increase of 68.45 per cent YoY. The EBITDA margin of company stands at 30.27 per cent this quarter compared to 19.90 per cent in Q2FY15. The increase in EBITDA is attributed to decrease in consumption of raw material by 13.56 per cent to Rs 140 crores compared to Rs 162 crores for the same period last year. Adding to this, Administration and Other expenses also decreased by 10.73 per cent and 16.68 per cent YoY respectively. Both these expenses consist of 11 and 17.16 per cent of total sales. The net profit stands at Rs 147 crores in Q2FY16 compared to Rs 90.66 crores in Q3FY15, an increase of 61.81 per cent YoY.

The six month ending net revenue from operations increased by 7.47 per cent and reached to Rs 1312 crores compared to Rs 1221 crores for the same period last year. The net profit for six month period stands at Rs 216 crores compared to Rs 152 crores for the same period last year, an increase of 42.27 per cent YoY.

Further company added that it continues to focus on productivity and cost efficiency. Both the feminine care and health care business continued to deliver strong double digit sales growth in a competitive market environment behind superior value propositions and strength of product portfolio. Reacting to the good numbers the stock of P&G surged to Rs 5857.15 , up 6.78 per cent from previous close on Monday.