Oral care company Colgate-Palmolive India posted net profit of Rs 209.6 crore for April-June quarter, down 10% year-on-year impacted by rural slowdown and inflationary pressure and lower margins.
The company’s sales rose 2.5% y-o-y to Rs 1,186.5 crore and an operating income of Rs 10 crore, which more than doubled during the quarter. However, company’s operating margins declined 320 basis points y-o-y to 27.2% because of higher total expense which was up 7% y-o-y during the quarter to Rs 916.6 crore.
Total expenditure rose on the back of higher raw material costs, which was up 12% year-on-year. Colgate Palmolive could have fared a little better on bottomline had it not been for exceptional expense of Rs 9 crore, which was incurred with respect to certain organisational changes, the company said in its regulatory filing.
Commenting on the results, Mukul Deoras, chairman at Colgate-Palmolive said, “The current quarter continued to witness challenging trends that we saw in the previous quarter. While we remain cautiously optimistic that the trends will improve in the coming quarters, the current quarter was impacted by overall rural slowdown and inflationary pressures.”
The company continues to maintain strong investment in innovation and brand building activities.