Procter & Gamble surges on good Q2 numbers

Procter & Gamble Hygiene and Health Care (P&G) surged 7% to Rs 5,890 on the BSE after the company posted a strong 62% year on year (YoY) jump in net profit to Rs 148 crore for the second quarter ended December 31, 2015.

The fast moving consumer goods (FMCG) company had profit of Rs 91 crore in the same quarter last financial year.

Net sales during the quarter under review increased 10.7% at Rs 713 crore as against Rs 644 crore in the year-ago period.

The company said both the feminine care and healthcare business continued to deliver strong double digit sales growth in the competitive market environment behind superior value propositions and strength of product portfolio.

The company continues to focus on productivity and cost efficiency, it added.

Total expenditure of the company during the quarter under review declined 3.7% YoY at Rs 512 crore due to lower raw material cost, which fallen 13.6% at Rs 140 crore over the previous year quarter.

Earnings before interest, tax, depreciation and amortisation (Ebitda) margin improved to 30.3% in Q2 against 16.17% in Q1 and 19.9 in the year ago quarter.

The stock hit an intra-day high of Rs 6,000 on the BSE. A combined 11,303 shares changed hands on the counter on the BSE and NSE till 11:00 AM.

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