Colgate-Palmolive (India) drops after weak Q2 numbers

Colgate-Palmolive (India) lost 4.44% to Rs 1,222 at 9:17 IST on BSE after net profit declined 24.51% to Rs 109.52 crore on 16% growth in net sales to Rs 895.70 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced after market hours on Friday, 25 October 2013.

Meanwhile, the S&P BSE Sensex was up 66.71 points or 0.32% at 20,750.23.

On BSE, 2,539 shares were traded in the counter as against average daily volume of 25,666 shares in the past one quarter.

The stock hit a high of Rs 1,247 and a low of Rs 1,230.25 so far during the day. The stock had hit a 52-week low of Rs 1,190.05 on 28 August 2013. The stock had hit a record high of Rs 1,580.40 on 1 January 2013.

The stock had underperformed the market over the past one month till 25 October 2013, gaining 3.19% compared with the Sensex's 4.17% rise. The scrip had also underperformed the market in past one quarter, declining 11.89% as against Sensex's 4.44% rise.

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

During the quarter, the company achieved a volume growth of 10% over the corresponding previous year quarter, led by a strong growth of 9% in toothpaste category wherein the company further enhanced its leadership position by registering a 56% volume market share for January 2013-September 2013 period compared to 54.6% in January 2012-September 2012 period. The flagship brands "Colgate Dental Cream", "Active Salt", "Max Fresh" and "Colgate Total" along with the recently launched "Visible White" have contributed to this consistent growth, Colgate-Palmolive (India) said in a statement.

The company further strengthened its leadership position in the Toothbrush category by registering a volume market share of 41.4% for January 2013-September 2013 period as against 39.3% in January 2012-September 2012 period.

Despite the inflationary environment and pressure on the rupee, the company's focus on driving efficiencies and reducing costs coupled with prudent price increases has resulted in higher gross margin and help to fund investments in building and strengthening brand equity and business, Colgate-Palmolive (India) said.

Colgate-Palmolive (India)'s board of directors at a meeting held on Friday, 25 October 2013, declared a first interim dividend of Rs 9 per share for the year ending 31 March 2014.

Colgate-Palmolive (India) is India's leading provider of oral care products 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. The company also provides a range of personal care products under the Palmolive brand name.

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