Gillette India posts slip in Q3 profit on rigid competition

BENGALURU (Reuters) - Gillette India posted a nearly 4% fall in third-quarter profit on Monday as stiff domestic competition dampened demand.

Gillette India, known for its Mach 3 brand of shaving razors, reported a profit of 990.9 million rupees ($11.9 million) for the January-March quarter, compared with 1.03 billion rupees a year earlier.

Consumer goods makers are increasingly facing strong competition from smaller manufacturers who are better equipped to occupy shelf space due to declining commodity prices.

Revenue from Gillette's core grooming segment, which accounts for 82% of the total, rose nearly 14% to 5.58 billion rupees, while the cost of raw materials consumed fell 6.3%.

Parent and consumer goods giant Procter & Gamble Co had raised its annual core profit forecast earlier in April, driven by price increases and resilient demand.

Gillette India's shares dipped 0.8% ahead of the results. It rose 1.2% in the March quarter, compared with a 5.3% fall in the Nifty FMCG index.

($1 = 83.4499 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami)