Colgate-Palmolive declines after muted Q3 earnings

Colgate-Palmolive (India) fell 1.11% to Rs 1,310.60 at 9:17 IST on BSE after net profit rose 1.6% to Rs 112.83 crore on 14.05% growth in total income to Rs 907.35 crore in Q3 December 2013 over Q3 December 2012.

The company announced the results after trading hours on Tuesday, 21 January 2014.

Meanwhile, the BSE Sensex was down 42.13 points, or 0.20%, to 21,208.99.

On BSE, so far 1,068 shares were traded in the counter, compared with an average volume of 14,597 shares in the past one quarter.

The stock hit a high of Rs 1,325 and a low of Rs 1,295.50 so far during the day. The stock hit a 52-week high of Rs 1,555 on 16 May 2013. The stock hit a 52-week low of Rs 1,190.05 on 28 August 2013.

The stock had underperformed the market over the past one month till 21 January 2014, rising 0.76% compared with the Sensex's 0.81% rise. The scrip had, however, outperformed the market in past one quarter, rising 3.78% as against Sensex's 1.71% rise.

The large-cap company has an equity capital of Rs 13.60 crore. Face value per share is Re 1.

Colgate Palmolive (India)'s net sales jumped 16% to Rs 884 crore in Q3 December 2013 over Q3 December 2012. The growth in bottom line lagged top line growth as advertisement expenditure surged. The company's advertisement expenditure rose 21.64% to Rs 121.46 crore in Q3 December 2013 over Q3 December 2012. The operating profit margin (OPM) declined to 16.89% in Q3 December 2013, from 19.12% in Q3 December 2012.

During the quarter, the company achieved volume growth of 10% on year on year basis, led by a strong growth of 11% in toothpaste category wherein the company further enhanced its leadership position by registering a 56% volume market share for the period January-December 2013, compared to 54.5% for the period January-December 2012. Colgate Palmolive (India) said that the company further strengthened its leadership position in the toothbrush category by registering a volume market share of 41.5% for the period January-December 2013, as against 39.8% for the period January-December 2012.

Colgate-Palmolive (India) is India's leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the Colgate brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company also provides a range of personal care products under the 'Palmolive' brand name.

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