Colgate India net profit up 22% to ₹340 crore in Q2 | Mint
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Business News/ News / India/  Colgate India net profit up 22% to 340 crore in Q2
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Colgate India net profit up 22% to ₹340 crore in Q2

Revenue grew by 6.6% to ₹1,492.1 crore in Q2 from ₹1,398.7 crore in the same quarter last year

The Nifty FMCG index is up nearly 16% so far in 2023, but Colgate India has outperformed with a return of 34% (Photo: Bloomberg)Premium
The Nifty FMCG index is up nearly 16% so far in 2023, but Colgate India has outperformed with a return of 34% (Photo: Bloomberg)

Mumbai: Colgate-Palmolive India Ltd (Colgate India) reported a net profit of 340 crore for the second quarter of FY24, up 22% from 278 crore in the same period last year and beat Bloomberg analysts' estimate of 329 crore. Revenue grew by 6.6% to 1,492.1 crore in Q2 from 1,398.7 crore in the same quarter last year.

“In this quarter we have doubled down on the Colgate Strong Teeth relaunch, expanding reach and availability. This has been further supported by the excellent performance of Colgate Max Fresh. We have also restaged our largest toothbrush franchise, Colgate Zig Zag. Our domestic growth remains strong, registering a 6.6% increase [yoy], with our toothpaste segment witnessing high single-digit growth," said Prabha Narasimhan, managing director and CEO of Colgate-Palmolive India Ltd.

While the Nifty FMCG index is up nearly 16% so far in 2023, Colgate India has outperformed the index with a return of 34%. Nestle and ITC are also up by a healthy 21% and 31%, respectively. However, HUL and Dabur have lagged behind the market, with returns of -3% and -9%, respectively.

Colgate India currently trades at price-to-earnings (P/E) ratio of 45.6 based on its estimated FY24 earnings, and 41.5 based on estimates for FY25, according to Bloomberg.

JPMorgan analysts wrote in a report published on 23 August, “In our view Colgate India is on the right track to revive topline growth while ensuring healthy profitability. It is now playing to its strengths of a superior science-backed portfolio (focus on Ayurveda is receding). Improving category volume growth with green shoots in rural also bode well. We would look to add on dips after the recent share price upmove."

The company's board has declared a first Interim dividend of 22 per equity share with a face value of Re 1 for FY24. The total dividend payout to shareholders will be 598.4 crore and will be distributed starting 21 November.

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Published: 26 Oct 2023, 04:24 PM IST
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