Mumbai: Colgate-Palmolive (India) Ltd on Friday said fiscal third-quarter standalone net profit declined 22.58% to Rs127.82 crore from Rs165.11 crore a year ago, hit by a cash crunch in the economy caused by demonetisation.
Net sales fell by 8.5% to Rs981.62 crore from Rs1,073.40 crore.
A Bloomberg poll of 20 analysts had estimated net profit at Rs140.50 crore and net sales at Rs990.50 crore.
Following the government’s demoentisation move on 8 November 2016, Colgate-Palmolive extended credit to its customers, provided additional incentives, accelerated processing of trade claims and advanced payments to its supply chain partners to address liquidity issues. “We see gradual pickup in the market as the liquidity situation improves,” said Issam Bachaalani, managing director, Colgate-Palmolive India.
On Friday, Colgate Palmolive India shares closed at Rs880.50 on the BSE, down 2% from the previous close, while the benchmark Sensex index rose 0.63% to edn the day at 27,882.46 points.