X

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.
Other income drives Colgate's profits - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 24, 2000

    Other income drives Colgate's profits

    Colgate Palmolive has reported a 32% jump in net profits to Rs 176 for the second quarter ended September 2000. However if one were to exclude the profit of Rs 42 m from sale of a residential apartment (from other income), net profits have increased by marginal 0.8%.

    (Rs m) 2QFY00 2QFY01 Change
    Sales 2,704 2,948 9.0%
    Other Income 53 92 73.6%
    Expenditure 2,470 2,729 10.5%
    Operating Profit (EBDIT) 234 219 -6.4%
    Operating Profit Margin (%) 8.7% 7.4%  
    Interest - -  
    Depreciation 61 43 -29.5%
    Profit before Tax 226 268 18.6%
    Other Adjustments 0 0  
    Tax 93 92 -1.1%
    Profit after Tax/(Loss) 133 176 32.3%
    Net profit margin (%) 4.9% 6.0%  
    Diluted number of shares(m) 136.0 136.0  
    Diluted Earnings per share* 3.9 5.2  
    *(annualised)      
    P/E (at current price) 38 29  

    During the quarter the company's advertisement to sales ratio increased to 19% of sales (from 17% in 2QFY00). Higher investment in brand equity building and rising raw material prices have resulted in more than 100 basis points decline in operating profit margins. However, Colgate's marketing initiatives has helped it to achieve volume growth of 7%.

    The company has relaunched and introduced several brands during the quarter. This includes revitalization of 'Colgate Dental Cream', launch of low priced 'Colgate Herbal' toothpaste and new 'Colgate Navigator' - toothbrush with a flexible head.

    At the current market price of Rs 149, Colgate is trading at a P/E of 29 times its 2QFY01 annualised earnings. We have projected a growth of 12.8% in sales and 15% in profits for the year ended March 2001. Based on the latest results we have to revise our projections due to higher other income and increasing promotional expenditure. The company's P/E was in the range of 50-60 times in the past 3 years.

     

     

    Equitymaster requests your view! Post a comment on "Other income drives Colgate's profits". 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...

    More
    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

    COLGATE SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK COLGATE

    • 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

    COLGATE 8-QTR ANALYSIS

    Detailed Quarterly Results With Charts

    COMPARE COLGATE WITH

    MARKET STATS