Gillette India's Q1 profit rises on steady demand for grooming products

Oct 31 (Reuters) - Gillette India (GILE.NS), known for its shaving razors, posted a nearly 7% rise in its quarterly profit on Tuesday, as moderating inflation helped lift demand for its grooming products, including in the countrys hinterlands.

Gillette India, in which consumer goods giant Procter & Gamble Co (PG.N) holds a 75% stake, said its first quarter profit rose to 926.9 million rupees ($11.13 million) from 867.8 million rupees a year ago.

Indias annual retail inflation eased to 6.83% in August from 7.44% in July, further easing to 5.02% in September on softer food prices, helping revive consumers discretionary spending.

Revenue from its mainstay grooming segment, which accounts for over three-fourths of the total revenue, rose 7.8%, while the smaller oral care segment reported a 7% increase.

Gillette Indias total revenue from operations climbed 7.7% to 6.68 billion rupees.

Total expenses for the company rose nearly 10% led by a 36% climb in the stock-in-trade purchase costs.

Fellow P&G Group company, Procter & Gamble Hygiene and Health Care (PROC.NS) on Monday posted a 36% jump in its quarterly profit.

Gillette Indias shares dipped 0.3% after the results. It rose 20.7% in the July-September quarter, compared with a 1.1% drop in the Nifty FMCG index (.NIFTYFMCG).

($1 = 83.2575 Indian rupees)