P&G Health soars 15% after PAT jumps 71% YoY in December quarter results

The management said that the higher PAT growth was supported by improved margin through portfolio premiumisation, healthy mix and optimization of expenses,

Shares of Procter & Gamble (P&G) Health rallied 15 per cent to Rs 4,721.2 per share in Monday’s intra-day trade, after the company reported 71 per cent year-on-year (YoY) jump in profit after tax (PAT) to Rs 76.80 crore in the December quarter (Q2FY23). Higher PAT growth was supported by improved margin through portfolio premiumisation, healthy mix and optimization of expenses.

Meanwhile, the company saw sales climb 11 per cent YoY to Rs 304.70 crore in Q2FY23. The earnings before interest, depreciation, tax and amortization (ebitda), on the other hand, grew 76 per cent YoY to Rs 109 crore.

EBITDA margins, too, improved 1287 bps to 35.1 per cent during the quarter. The board of directors of the company recommended an interim dividend of Rs 45 per equity share for FY23. The company follows July to June as a fiscal year.

P&G Health is one of India’s largest VMS companies manufacturing and marketing vitamins, minerals, and supplements products for a healthy lifestyle and improved quality of life, including Neurobion, Livogen, SevenSeas, Evion, Polybion and Nasivion.

The management said that the company witnessed consistent growth over the second quarter and an overall promising first half of the year.

"With continued focus on the health and wellness of patients and consumers, the company launched Polybion A injection, a new and improved formulation, which can help doctors effectively manage the recovery of their patients, while giving a good boost to energy levels," the management added.

Analysts at ICICI Securities, on the other hand, said that P&G Health witnessed consistent growth over the second quarter on the back of improved margin through portfolio premiumisation, healthy mix and optimisation of expenses.

"PGHL launched key product Polybion A injection during this quarter. The key differentiator for P&G Health is that its core category is VMS and amid increasing demand for daily supplementation, the company is focused on executing its strategy of offering superior brands, driving productivity, increasing reach and improving awareness," the brokerage firm added.