Oral care major, Colgate Palmolive India, has declared an encouraging YoY 22% growth in bottomline in 3QFY01. What is even more encouraging is a 19% growth in turnover during the period. The company managed to increase its net margins by a marginal 10 basis points.
Net Sales Turnover
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax & extraordinary income
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Earnings per share*
Current P/e ratio
In the 1st quarter of FY01 (1QFY01), Colgate's topline and bottomline grew by 2% and 11% respectively. In 2QFY01 however, the company's numbers improved and its declared a 9% growth in topline and a significant 32% in bottomline. This however, came on the back of a huge 74% jump in other income coupled with a 30% decline in depreciation.
In light of Colgate's performance in the previous quarters in FY01, 3QFY01 numbers look more balanced. Both topline and bottomline have shown good growth. However, a 52% jump in advertising expenditure saw operating margins squeezed by 100 basis points. A 37% decline in depreciation helped the company improve its net margins.
On a nine month consolidated basis, the company has shown a 10% growth in turnover to Rs 8.8 bn. Its bottomline showed an increase of 22% during the period. The company was helped in its performance by a 14% surge in other income to Rs 177 m coupled with a 31% decline in depreciation provisioning. Other income and net profit for the nine months ended Dec. 31, 2000 includes profit of Rs. 42 m, on sale of a residential apartment.
At the current price of Rs 181, the stock trades at 43 times its annualised nine month FY01 earnings. The stock is likely to see a positive movement in light of its good turnover growth.
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