Gillette India earns higher profit in first quarter due to strong demand

Gillette India on Monday reported a nearly 44% rise in first quarter profit due to strong demand for its beauty products.

Gillette India, famous for its razors and shaving creams, posted a profit of Rs 1.33 billion ($15.8 million) in the quarter ended September 30, compared with Rs 926.9 million a year earlier.

The company’s new products and designs, including multi-blade systems and gel shaving creams, are attracting consumers, with continued demand for its higher-priced products.

“Growth has been broad-based amid continued greening of rural markets,” the company said in a press release.

Rural demand in India has accelerated over the past few quarters, partly due to increased government spending.

Revenue from the core grooming segment, which makes razors and contributes 83% to Gillette India’s total revenue, grew 23% during the quarter to Rs 6.49 billion.

However, the company is also spending money on advertising.

Its advertising and promotion spend increased by 11%, taking its total spend by 11% to Rs 6.12 billion.

Earlier this month, parent company Procter & Gamble Co. reported a surprise decline in quarterly sales as price-conscious consumers in its key U.S. and Chinese markets turned to cheaper brands of health and family care products.

Gillette India shares closed 3.6% higher ahead of the results and are up about 32% for the year so far.