Consumer products giant Colgate Palmolive (India) Ltd reported a profit of Rs 278 crore on Thursday for the quarter ended September, 2.2 percent higher than the street estimate, benefiting from price increases implemented to counter the blow from a surge in raw material costs.
Analysts in a CNBC-TV18 poll had estimated the profit at Rs 272 crore.
The gross margins of the company for the second quarter stood at 63.8 percent against 66.8 percent in the year-ago period. The advertisement spends for the period under review declined 14.6 percent to Rs 158.2 crore, down from Rs 185.3 crore in the corresponding period in the previous year. The ad spends constituted to 11.4 percent of sales.
“The current quarter has seen improved momentum versus prior quarters driven by the focused deployment of initiatives during the festive season. We continue to remain cautiously optimistic on the overall growth trend, especially in rural, and are encouraged by the growth of modern trade and e-commerce businesses in the current quarter," said Prabha Narasimhan, Managing Director at Colgate-Palmolive (India) Ltd, said.
The biggest trigger for the company's performance is the appointment of Narasimhan with effect from September 1.
The shares of the company ended 1.6 percent higher at Rs 1,603.2 on BSE on Thursday.
First Published: Oct 20, 2022 4:18 PM IST
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