Colgate Palmolive Faces Rs 170 Crore Tax Liability

31 Oct 2023 , 01:20 PM

Colgate Palmolive’s shares opened at Rs 2,089.25, marking a 1.7 % increase on October 31, but later dipped to Rs 2,085.25 in the early trade. The company disclosed in a regulatory filing on October 30 that it received a transfer pricing order from the Income Tax Authority, which imposed a Rs 170-crore income tax liability for the assessment year 2021-22.

Colgate Palmolive stated that it is currently awaiting the completion of draft assessment proceedings and plans to apply before the dispute resolution panel in response to this order. However, the company emphasized that this transfer pricing order has no impact on its financial, operational, or other activities.

On October 26, the company released its Q2FY24 earnings report, revealing a 22.31 % year-on-year increase in net profit to Rs 340.05 crore and a 6.09 % growth in revenue to Rs 1,462.38 crore.

The earnings before interest, tax, depreciation, and amortization (EBITDA) for the same period reached Rs 482.2 crore, up from Rs 408 crore in the previous fiscal, with an EBITDA margin of 32.8 %, an increase from 29.4 % in Q2FY23.

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