Brands
Q3-2015: Gillette India y-o-y marketing spends down 5.8%
BENGALURU: Gillette India Limited reported a 5.8 per cent drop in advertisement and sales promotion (ASP) spends in Q3-2015 (quarter ended 31 March, 2015, current quarter) to Rs 116.71 crore (23.6 per cent of Total Income from Operations or TIO) as compared to the Rs 123.84 crore (27.2 per cent of TIO) in the corresponding year ago quarter (Q3-2014), but was 1.3 per cent more than the Rs 115.25 crore (23.1 per cent of TIO) in the immediate trailing quarter (Q2-2015).
During the nine month period ended 31 March, 2015 (9M-2015), Gillette ASP at Rs 323.46 crore (22.6 per cent of TIO) was 4.7 per cent more than the Rs 308.84 crore (24.3 per cent of TIO) in 9M-2014.
Note: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore.
(2) Gillette Financial year closes of June 30, hence, the quarter ended June 30 is Q1, while the quarter ended September 30 is Q2; quarter ended December 31 is Q2 and quarter ended March 31 is Q3.
Three businesses contribute to the company’s TIO – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3.
Gillette TIO in Q3-2015 at Rs 494.14 crore was 8.5 per cent more than the Rs 455.50 crore in Q3-2015, but was 0.9 per cent lower than the Rs 498.47 crore in Q2-2015. Across 13 quarters starting Q3-2012 (quarter ended 31 March, 2014) until Q3-2015 (quarter ended 31 March, 2015), the company’s TIO shows a linear increasing trend as represented by the broken blue line. In 9M-2015, Gillette’s TIO at Rs 1432.59 crore was 12.8 per cent more than the Rs 1270.07 crore in 9M-2014.
During the 13 quarter period under consideration in this report, Gillette’s ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO as is indicated by the broken green trend line and the broken maroon trend line respectively. The highest ASP in absolute rupees and in terms of percentage of TIO spent by the company in these 13 quarters was in Q3-2014 (quarter ended June 30, 2014), at Rs 123.84 crore and 27.2 per cent of TIO while the lowest in both parameters was in Q3-2013 at Rs 66.61 crore and 18.7 per cent of TIO respectively.
Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio across five years starting FY-2010 until FY-2014. As is evident, the company’s ad spend ratio has increased to 1.558 times, 1.424 and 1.412 times as compared to trade incentives in FY-2014, FY-2013 and FY-2014 respectively. In FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.199 and 1.2013 respectively. Based on the past trends, it is likely that the ratio in FY-2015 will be skewed towards ad spends, and consequently during the three completed quarters and the balance single quarter of the current Financial Year as well.
Gillette PAT had been steadily going down until Q1-2015 both in terms of absolute rupees and in terms of percentage of TIO. Also, in FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore (6.1 per cent of TIO) in FY-2013. However, during the 13 quarter period under consideration, a reversal happened in Q2-2015. Further, the company’s 9M-2015 PAT at Rs 85.30 crore (six per cent of TIO) was more than double (2.47 times) the PAT of Rs 34.56 crore (2.7 per cent of TIO) in 9M-2014. This 9M-2015 PAT is already more than the PAT reported by the company for FY-2012, FY-2013 and FY-2014, and is almost at par with PAT in FY-2011.The company is a profitable company, and should earn profit after taxes in the remaining quarter – Q4-2015. Hence, it should report much better, if not record numbers for FY-2015.
As mentioned above, post Q2-2015, at least in terms of absolute rupees, Gillette PAT shows a linear increasing trend, as is evident from the broken orange trend line. In Q3-2015, the company’s PAT at Rs 30.76 crore more than tripled (3.63 times) the PAT of Rs 8.68 crore in Q3-2014, but was 16.5 per cent lower than the Rs 36.86 crore in Q2-2015. In terms of percentage of TIO, the broken brown trend line indicates a downward linear trend, which may yet change.
In its earnings release for Q3-2015, Gillette India says that grooming business sales were up nine percent, portable power business sales were up four per cent and oral care business sales were up six per cent as compared to the corresponding year ago quarter.
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
