Colgate India Q2 Results: Profit Rises But Margin Under Pressure
Colgate India's net profit rose 15% sequentially to Rs 269.2 crore in the quarter ended September.
Colgate-Palmolive India Ltd.’s profit rose even as margin contracted because of commodity inflation.
Net profit of the maker of namesake toothpaste rose 15% sequentially to Rs 269.2 crore in the quarter ended September, according to its exchange filing. Over a year earlier, however, the bottom line declined 1.8%.
Its revenue rose 16% over the previous three months and 5.2% year-on-year to Rs 1,344 crore. That compares with the Rs 1,370.5-crore consensus estimate of analysts tracked by Bloomberg.
Other Highlights (QoQ)
Operating profit was up 13% to Rs 392.3 crore
Margin contracted 80 basis points to 29.2%. Year-on-year, it declined 221 basis points.
Total expenses rose 16% due to higher advertising spends.
Cost of materials consumed rose 13%.
The consumer goods maker did not disclose its volume growth for the quarter ended September, but said it has seen a “good recovery on volume growth trends quarter-on-quarter”.
“Our overall growth momentum across our brands / categories has shown a consistent trajectory... Overall penetration trends remain strong and are seeing favourable trends quarter-on-quarter,” Ram Raghavan, managing director at Colgate India, was quoted as saying in a statement.
Meanwhile, the company's board has declared the first interim dividend of Rs 19 apiece for the financial year 2021-22.
Shares of Colgate India closed 1.84% down compared with a flat Nifty 50.