GST impact: Colgate-Palmolive Q2 net profit down 2% at Rs 177 cr

FMCG firm Colgate-Palmolive (India) Ltd on Monday reported a 2.06 per cent decline in its net profit at Rs 177.57 crore for the second quarter ended September 30.

The company had posted a net profit of Rs 181.31 crore during the same period of the previous fiscal, Colgate- Palmolive (India) said in a regulatory filing.

Net sales during the quarter under review was down 9.78 per cent at Rs 1,077.98 crore as against Rs 1,194.92 crore in the July-September quarter of 2016-17.

The company said reported net sales declined by 10 per cent due to changes in treatment of indirect taxes post GST implementation.

"While wholesale demand was soft at the start of the quarter, we saw a gradual recovery and expect continued improvement in the coming quarters," Colgate-Palmolive (India) Managing Director Issam Bachaalani said.

Meanwhile, the company's board declared the first interim dividend of Rs 4 per share of Re 1 each for this fiscal.

The company's stock closed 3.20 per cent down at Rs 1,057 apiece on BSE today.