Colgate Palmolive (India) Ltd.'s quarterly profit rose as advertising and other expenses fell.
Net profit of the namesake toothpaste maker rose 12.3% year-on-year to Rs 274.2 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 241.3-crore consensus estimate of analysts tracked by Bloomberg.
- Revenue rose 5.2% year-on-year to Rs 1,285.5 crore, against the estimated Rs 1,274.7 crore.
- Operating profit jumped 26.8% to Rs 409.3 crore.
- Operating margin expanded to 31.8% from 26.4%, above the consensus estimate of 28.1%.
- Advertising and other expenses were lower by 4% over the year ago.
“All categories saw positive growth this quarter, with toothpaste continuing its accelerated performance, driven by strong brand fundamentals and household penetration,” Ram Raghavan, managing director at Colgate India, said in a statement accompanying the result filing.
During the quarter, Colgate India launched Colgate Visible White Instant, Colgate Vedshakti Mouth spray and a line of toothbrushes.
“Our sharp focus is aimed at fulfilling demand and ensuring uninterrupted access ensured agile and innovative approaches, specifically in our supply chain and distribution efforts,” said Raghavan.
Meanwhile, the company declared an interim dividend of Rs 18 per share for 2020-21.
Shares of Colgate Palmolive, however, fell 2.5% after the results were announced, compared with a 0.4% gain in the Nifty 50 Index.
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