Net profit rose to Rs159.41 crore from Rs130.86 crore a year ago; total income increased 1.97 per cent to Rs1,025.49 crore from Rs1,005.67 crore
Mumbai, India – Colgate-Palmolive (India) Ltd on Wednesday reported a net profit rise 21.81 per cent for the quarter ended 31 December but missed analysts’ estimates. Net profit rose to Rs.159.41 crore from Rs.130.86 crore a year ago. Total income increased 1.97 per cent to Rs.1,025.49 crore from Rs.1,005.67 crore. A Bloomberg poll had estimated standalone net profit at Rs.182.70 crore and net sales at Rs.1,097 crore.
The organic sales growth of the company would have been 7 per cent; however, this was offset due to the phasing out of fiscal benefits in the state of Himachal Pradesh, the company said in a statement to the BSE. Also, the unseasonal rains in Chennai and the de-stocking in certain channels impacted sales, the company added.
Likewise, its net profit after tax would have been up by 50 per cent, if the impact of phasing out of fiscal benefits in Himachal Pradesh is removed, the company statement said.
In 2003, Himachal Pradesh and Uttarakhand were given a range of incentives to promote industrial activity by the central government. These included excise duty exemption for ten years, income tax exemption for five years and capital investment subsidy. Companies were also provided lower electricity rates, cheap land and the option of a deferment of sales tax by the state governments. Some of these fiscal benefits are now coming to end.
The company’s volume market share increased by 60 basis point (bps) to 57.3 per cent in the December quarter over the same period last year, driven by an improvement in sales volumes of Colgate Dental Cream, Active Salt and Max Fresh. In the toothbrush segment, volume market share improved by 140 bps in the December quarter over the year-ago quarter.
However, the overall volume growth for the company was muted at 1 per cent in the December quarter over the year-ago quarter. One basis point is 0.01 per cent.
Colgate-Palmolive lost 1.43 per cent to close at Rs.854.95 on the BSE on Wednesday. The benchmark Sensex closed at 24,492.39 points, up 0.03 per cent. – Sapna Agarwal