Colgate-Palmolive India Ltd.'s quarterly profit rose, exceeding analysts' estimates.
Net profit of the toothpaste-maker increased 35.7% over the previous year to Rs 330.1 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 296.96 crore consensus estimate of analysts tracked by Bloomberg.
Colgate Palmolive Q3 FY24 Highlights (YoY)
Revenue grew 8.1% to Rs 1,395.6 crore as against a Bloomberg estimate of Rs 1,377.3 crore.
Ebitda rose 29.6% to Rs 468.4 crore versus an estimate of Rs 429.3 crore.
Margin expanded to 33.5% from 27.9%. Analysts had forecast it at 31.2%.
Cost of raw materials consumed fell 9.6% to Rs 334.36 crore.
Advertising spends, as a percentage of sales, expanded 148 basis points year-on-year and 63 basis points sequentially. It stood at 14.6% of net sales.
Domestic sales grew at 8.8% as compared with the same quarter last year, and the toothpaste segment achieved "double-digit growth and positive volume expansion", according to Prabha Narasimhan, managing director and chief executive officer at Colgate-Palmolive (India) Ltd.
"Our current performance underscores the effectiveness of our strategy, focus on technology, securing the right talent, and efforts in governance and cost management," Narasimhan said, adding that these initiatives have yielded consistent growth for the company.
Shares of Colgate Palmolive closed 2.16% higher on Friday, as against a 0.5% gain in the benchmark Nifty 50. The results were declared on a market holiday, on account of the Ram Temple inauguration in Ayodhya.
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