COLGATE Announces Quarterly Results (3QFY20); Net Profit Up 3.6%

Fri, 31 Jan

COLGATE has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

COLGATE Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	10,994	12,132	11,472	-5.4%	4.3%
Other income	Rs m	79	172	58	-66.3%	-26.7%
Turnover	Rs m	11,073	12,304	11,530	-6.3%	4.1%
Expenses	Rs m	7,849	8,988	8,311	-7.5%	5.9%
Gross profit	Rs m	3,145	3,144	3,161	0.5%	0.5%
Depreciation	Rs m	406	504	515	2.1%	26.8%
Interest	Rs m	0	24	29	21.2%	0.0%
Profit before tax	Rs m	2,818	2,788	2,674	-4.1%	-5.1%
Tax	Rs m	897	347	683	97.1%	-23.8%
Profit after tax	Rs m	1,921	2,441	1,991	-18.4%	3.6%
Gross profit margin	%	28.6	25.9	27.6
Effective tax rate	%	31.8	12.4	25.6
Net profit margin	%	17.3	19.8	17.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 4.3% on a year-on-year (YoY) basis. The expenses were up by 5.9% YoY during the same period.
• The company's operating profit increased by 0.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.6% in 3QFY20 as against 28.6% in 3QFY19.
• Depreciation charges increased by 26.8% and finance costs increased by 0.0% YoY, respectively.
• Other income declined by 26.7% YoY during the quarter.
• Net profit for the quarter increased by 3.6% YoY. Net profit margins during the quarter declined from 17.3% in 3QFY19 to 17.3% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 5.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 7.5% QoQ during the same period.
• The company's operating profit increased by 0.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 27.6% in 3QFY20 as against 25.9% in 2QFY19.
• Net profit for the quarter declined by 18.4% QoQ, while net profit margins declined from 19.8% in 2QFY19 to 17.3% in 3QFY20.

To see how COLGATE has performed over the last eight quarters,please visit here.

DISCOVER: How to Potentially Multiply Your Returns by Upto 5x...

COLGATE Share Price Performance

Over the last one year,COLGATE share price has moved up from Rs 1,279.7 to Rs 1,361.9, registering a Gain of Rs 82.2 or around 6.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,732.7 (up 0.3%). Over the last one year it has moved up from 11,615.9 to 11,732.7, a gain of 117 points (up 1.0%).

Overall, the S&P BSE SENSEX is up 15.1% over the year.

Current Valuations

At the current price of Rs 1,361.9, the price to earnings (P/E) ratio of COLGATE stands at 45.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 25.6 times.