Colgate-Palmolive (India) Ltd's Q3FY17 standalone net profit declines 22% yoy to Rs.128 crore : Misses Estimates

The company’s standalone revenue stood at Rs. 991 crore, down 8.41% yoy and 6.21% qoq.

Jan 27, 2017 02:01 IST India Infoline Research Team

Colgate-Palmolive (India) Ltd Q3FY17

Standalone Results Q3FY17: (Rs. in crore)

Q3FY17 YoY (%)
Revenue 991 [8.4]
EDITDA 214 [10]
EBITDA Margin (%) 21.6 [41]
Net Profit (adjusted) 128 [22]
***EBITDA margin change is bps
Consolidated EPS for the quarter stood at Rs. 5.78.

Colgate-Palmolive Ltd posted a revenue decline of 8.4% yoy in 3QFY17 in line with estimates and 22% net profit decline to Rs 128 Cr missing estimates of Rs 152 Cr.

Colgate-Palmolive Ltd posted a revenue decline of 8.4% yoy in 3QFY17 due to lower volumes and impact of demonetisation.

Operational costs were lower with 26% decline in ad spends to Rs 84 Cr but stood higher than estimates. As a result, EBITDA declined 10% yoy to Rs 214 Cr missing estimates by 5%. EBITDA margin contracted 41 bps yoy to 21.6%.

Net profit declined 22% yoy to Rs 128 Cr missing estimates of Rs 128 Cr. This was supported by lower taxes (15% decline yoy) and 14% yoy rise in other income to Rs 11 Cr.

Technical View:

Colgate-Palmolive (India) Ltd is currently trading at Rs. 880, down by 18.1 points or 2.02% from its previous closing of Rs. 898.1 on the BSE.
The scrip opened at Rs. 924 and has touched a high and low of Rs. 924 and Rs. 878.25 respectively. So far 543303(NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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