P&G Q1 profit jumps 36% YoY led by acceleration of volume growth; stock rises 1%

Shares of Procter & Gamble Hygiene & Health Care jumped nearly 1 percent in early trade on October 31 as the FMCG company reported a 36 percent jump in profit to Rs 211 crore for quarter ended September FY24 (Q1FY24). At 9:42 am the Procter & Gamble Hygiene & Health Care (PGHH) stock was trading 0.71 percent higher at Rs 16,824 on NSE.

P&G’s jump in profit was led by acceleration of volume growth coupled with product price-mix and productivity.

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Revenue from operations increased by 9 percent YoY to Rs 1,138 crore driven by a superior retail execution and integrated growth strategy.

Brokerage Views

Brokerage firm Motilal Oswal has given a ‘neutral’ rating to the PGHH stock with a target price of Rs 16,940 in results update report dated October 30. The report further stated that, “PGHH reported high single-digit sales growth in 1QFY24 (ending in June), surpassing our initial double-digit growth expectations. Profit after tax (PAT) is up 36 percent YoY driven by an increase in volume growth, a favorable product price-mix, and enhanced productivity.

“The company continues to grow with strong product portfolio of sanitary napkins and healthcare business, superior consumer communications and stream of product innovations.”

Stock Performance

The Procter & Gamble Hygiene & Health Care (PGHH) stock has given a return of 20.11 percent over the last six months. The benchmark Nifty50 index has given a return of 5.47 percent over the same duration.

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