Colgate-Palmolive (India) posted a 12.32% rise in net profit to Rs 274.19 crore in Q2 September 2020 from Rs 244.11 crore registered in Q2 September 2019.Net sales stood at Rs 1,277.66 crore in Q2 September 2020, an increase of 5.3% over the same quarter of the previous year. Domestic net sales for the quarter grew 7.1%. Gross margins were up 340 basis points (bps) and EBITDA for the quarter was up 540 bps. The result was announced during market today, 21 October 2020.
Profit before tax (PBT) surged 32.3% to Rs 368.93 in Q2 September 2020 from Rs 278.77 crore in Q2 September 2019. Current tax expense rose 82.76% to Rs 94.56 crore in Q2 September 2020 over Q2 September 2019. Colgate said excluding the one time impact of tax rate change in the previous year, the net profit growth is 32%.
Commenting on the performance, Ram Raghavan, MD at Colgate-Palmolive (India) said, "We are very pleased with our performance as we continue to see momentum strengthening across the portfolio with domestic revenue growing at 7.1% this quarter. Our resilience and disciplined approach to managing all revenue and cost drivers, despite all the uncertainties and challenges around us drove improvements in key financial metrics with gross margins and EBITDA at 67.9% and 32% respectively.
All categories saw positive growth this quarter with Toothpaste continuing its accelerated performance, driven by strong brand fundamentals and household penetration. Our sharp focus aimed at fulfilling demand and ensuring uninterrupted access ensured agile and innovative approaches, specifically in our supply chain and distribution efforts."
Meanwhile, the company has declared an interim dividend of Rs 18 per equity share and the record date is on 2 November 2020.
Shares of Colgate-Palmolive were down 3.26% at Rs 1412.15 on BSE.
Colgate-Palmolive (India) is a provider of oral care products like toothpastes, toothpowder, mouthwash, toothbrushes and dental gel under the 'Colgate' brand.
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