Colgate-Palmolive (India) shares were down on Wednesday despite the fast-moving consumer goods firm posting robust growth in its bottom line for the fourth quarter.
What Happened: Colgate-Palmolive (India)’s profit after tax for the March quarter went up 20.1% rise to ₹379.8 crore compared to ₹316.2 crore in the same period last year. The company attributed this growth to higher net sales, which increased from ₹1,341.7 crore to ₹1,480.7 crore year-on-year.
The fourth quarter of FY24 demonstrated sustained growth momentum, primarily driven by strong performance in the toothpaste segment. Notably, rural markets showed signs of robust demand recovery, outpacing urban areas.
Colgate-Palmolive (India) continued to invest in brand building, with an 18% increase in advertising spend during the fourth quarter compared to the previous year.
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All-Round Performance: Colgate-Palmolive (India) Managing Director & CEO Prabha Narasimhan highlighted the faster growth of the rural business compared to urban areas, as well as strong performance in modern trade and e-commerce platforms.
Looking ahead, Narasimhan expressed optimism regarding market recovery, reinforced by the company’s strong brand and robust innovation pipeline. The introduction of a “Tooth Whitening Booster” under the “Visible White” range was cited as an example of upcoming innovations.
Furthermore, the company’s board declared a second interim dividend of ₹26 per share a one-time special interim dividend of ₹10 per share.
Price Action: Colgate-Palmolive (India)’s share price was trading flat at around ₹2,819.15 on Wednesday.
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