Gillette proved the focus of investor attention on Wednesday after it showed a solid Q1 net profit after being in the red in the previous corresponding quarter.

The scrip of the shaving products major leaped up by 5.21% to Rs 340 in early morning trades following the turnaround results. By 10:45 IST, the scrip of the MNC FMCG company registered a mere 1,890 shares on BSE, though.

After market hours on Tuesday, Gillette said that, for the first quarter ended 31 March 2003, net profit came in at Rs 8.2 crore compared to a loss of Rs 2.6 crore in the corresponding period of the previous year. Net sales increased 16% to Rs 85.8 crore from Rs 73.9 crore in MQ 2002.

GIL's business operations are divided into two key segments namely grooming and portable power. The grooming sector includes blades, razors and toiletries while the portable power segment includes batteries, torches and lamps. The company is India's largest shaving products manufacturer and its product portfolio consists of brands such as Sensor Excel, Gillette Mach III, Gillette Presto, Gillette Series Shaving Gel etc.

In the last quarter, the domestic grooming segment grew by 40%, while the oral care and appliances segment rose by 43%.

In fact, results for the previous quarter are not comparable due to divestiture of the Geep battery business (in the last quarter of 2002). The company sold that business for Rs 30 crore along with the Geep trade marks, designs, copyrights and all other rights in sales and distribution network. The sale was in line with the parent company's strategic focus on the alkaline batteries segment.

As on 31 March 2003, the promoters held 85.68% in the equity of Gillette India, while the public and institutions held 7.92% and 1.04%, respectively.