Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Colgate FY01: Where is the smile? - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jun 18, 2001

    Colgate FY01: Where is the smile?

    Colgate Palmolive (India) Limited has posted a net profit of Rs 625 m for the year ended March 31, 2001. This is up 21% YoY. On the face of it the growth looks good. But the company has earned Rs 55 m from the sale of real estate and this is included in this growth. If we remove the effect of this one time gain, Colgate's net profit actually went up by only 10%.

    (Rs m) FY00 FY01 Change
    Gross Sales 11,212 11,769 5.0%
    Other Income 152 240 57.9%
    Expenditure 10,231 10,801 5.6%
    Operating Profit (EBDIT) 981 968 -1.3%
    Operating Profit Margin (%) 8.7% 8.2%  
    Interest 2 3  
    Depreciation 232 202 -12.9%
    Profit before Tax 899 1,003 11.6%
    Tax 381 433 13.6%
    Extraordinary items 0 55  
    Profit after Tax 518 625 20.7%
    Net profit margin (%) 4.6% 5.3%  
    Effective tax rate (%) 42.4% 43.2%  
    No. of Shares (eoy) (m) 136.0 136.0  
    Diluted earnings per share 3.8 4.6  
    P/E ratio   34.8  

    Gross sales of the company have shown a 5% increase YoY to Rs 11,769 m during the same period. The company has shown a sharp jump in other income and its depreciation provisioning has come down by 13%. This has helped Colgate in improving its net profits.

    Colgate's fourth quarter results seem to have caused the damage to its full year performance. In its previous 9 months of FY01, the company's turnover growth stood at 10% YoY. Its bottomline had improved by 22%. Going by these figures, it seems that Colgate actually saw a miniscule 0.2% growth in 4QFY01 turnover and a 16% decline in its net profit during the same period.

    At the current price of Rs 160 the stock is trading at a P/E multiple of 34.8 x its FY01 earnings (including the extraordinary gains). If we exclude the extraordinary gains the Colgate stock is trading at a P/E multiple of 38 times FY01 earnings. The valuations of the company are high considering the current slowdown facing the FMCG sector.



    Equitymaster requests your view! Post a comment on "Colgate FY01: Where is the smile?". Click here!


    More Views on News

    Colgate: Competition Impacts Volume Growth (Quarterly Results Update - Detailed)

    Nov 25, 2016

    Colgate-Palmolive (India) has announced the second quarter results financial year 2016-2017 (2QFY17). While the topline increased by 9.5% YoY, the bottomline has increased by 15.6% YoY.

    Colgate: Margins come under pressure (Quarterly Results Update - Detailed)

    Oct 4, 2016

    Colgate-Palmolive (India) has announced the first quarter results financial year 2016-2017 (1QFY17). While the topline increased by 12.4% YoY, the bottomline has increased by 8.4% YoY.

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    Colgate: Excise Benefit Phase-off Mars FY16 Results (Quarterly Results Update - Detailed)

    Jun 2, 2016

    Colgate-Palmolive (India) declared results for the quarter and year ended March 2016. The company's revenues were up by 7% YoY, while profits declined by 11% YoY during the quarter.

    Colgate: Lower A&P Costs Prop Up Margins (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Colgate-Palmolive (India) announced its results for the quarter ended December 2015. The company's revenues were up by 2% YoY, while profits rose by 22% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in COLGATE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts