June Numbers Lead Colgate Southward

Colgate-Palmolive slipped on the bourses on Monday after the company posted its June-ended results.

On the Bombay Stock Exchange, the stock settled down 1.73 per cent at Rs 136.35, but off from its intra-day low of Rs 133.35. More than 30,920 shares changed hands on the counter.

On the National Stock Exchange, around 47,850 shares changed hands and the stock settled at Rs 133.50.

During mid-session, the company announced its results for the quarter ended June 30, 2002. Net profit rose 19 per cent to Rs 18.8 crore compared with Rs 15.8 crore in the corresponding period last year.

However, sales dropped by 14.5 per cent to Rs 262.2 crore, from Rs 306.6 crore. Colgate's net profit was in line with analysts' expectations, while sales were below their projections.

An analyst said the performance were unimpressive, adding that the poor sales figure was due to stiff competition from unorganised players.

With monsoon playing truant agricultural production is likely to be hit adversely and thereby, rural income. This means the company is set for some tough times, said the analyst.

Colgate-Palmolive, a 51 per cent subsidiary of Colgate-Palmolive, US, is India's largest toothpaste maker by market share. In the Rs 1,000 crore toothpaste arena, the company commands around 50 per cent spoils.

Colgate's product range includes tooth pastes, tooth powders and tooth brushes under the 'Colgate' brand. The company is also a leading producer of personal care products under the 'Palmolive' brand.