Net sales registered an 12.31 per cent increase during the period to Rs 115.75 crore from Rs 103.06 crore. Analysts say the results are satisfactory considering the topline and bottomline growths which are driven by core brands like Vicks and Whisper.

Operating profit rose by 18 per cent during the period to Rs 21.45 crore from Rs 18.12 crore. Operating profit margins were higher at 18.53 per cent as against 17.58 per cent. Net profit margins have risen to 11.61 per cent from 9.75 per cent.

Dalal & Broacha Stock Broking head of research Milind Karmarkar says, "Improved margins are largely on the back of a de-emphasis on non-core brands like Old Spice and a more focused investment in core brands Vicks and Whisper."

Analysts say the company's strategy has been to focus on its core strengths of feminine hygiene and healthcare. On the company's stock price movement, analysts said the scrip was holding good as compared to other FMCG stocks. It closed at Rs 847 on the BSE, lower by Rs 25 over the previous close. Interest charges during the third quarter dropped to Rs 68 lakh from Rs 1.52 crore in the previous year. Depreciation was lower at Rs 5.75 crore as against Rs 6.03 crore. Provision for taxation was marginally lower at Rs 2.14 crore as against Rs 2.98 crore.

Commenting on the third quarter performance, P&G India chairman and managing director Bharat V Patel said, "The company has registered good results in the third quarter due to effective management of material costs along with more efficient marketing behind better consumer understanding. In our core business categories -- healthcare and feminine hygiene -- Vicks continued its strong sales growth while Whisper held sales during this quarter."

During the first nine months ended March 31, 1999, P&G posted a 37.24 per cent rise in net profit and a 9.17 per cent rise in sales. The company posted a net profit of Rs 45.91 crore (Rs 33.45 crore) over net sales of Rs 371.42 crore (Rs 340.22 crore).

Product range moves up value scale
Reiterating P&G's strong financial performance this fiscal is the fact that net profit of Rs 45.91 crore for the nine-month period ended March 31, 1999, have already eclipsed last year's earning of Rs 43.19 crore for the full 12 months ended June 1998.

More interesting perhaps is the fact that the bottomline growth of 37.25 per cent for the nine-month period has been achieved on a topline growth of a mere 9.17 per cent. This is clearly indicative of the fact that product ranges in most FMCG companies have moved up the value scale.

Largely through packaging innovations and focused marketing, all of them also indicate improved margins. In fact operating margins for the nine months have improved from 18.18 per cent to 20.21 per cent.