Colgate-Palmolive surges 6% on better than expected Q1 results

Colgate-Palmolive (India) surged 6% to Rs 1,099 on BSE after the company reported a better-than-expected 8% growth in net profit at Rs 136 crore in June quarter (Q1FY18). Analysts on an average had expected profit of Rs 128 crore for the quarter.

The company engaged in personal care business had a profit of Rs 126 crore in the same quarter year ago.

Net sales for the quarter was reported at Rs 1,110, 3% lower from the previous years, largely due to destocking in the trade channel ahead of the implementation of Goods & Service Tax (GST). Volume declined 5% during the quarter.

“Despite the transition challenges leading to softness in sales, we are pleased to report an 8% increase in profits, margin expansion of 50 bps and EBITDA (Earnings before interest, taxation, depreciation and amortization) by 150 bps at 20% to sales,” said Issam Bachaalani, managing director, Colgate-Palmolive (India).

The trading volumes on the counter more than doubled with a combined 1.24 million shares changed hands on the NSE and BSE till 1:53 pm.

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