Equity Analysis

Corporate Results - Detailed News
Colgate Palmolive
27-Jan-22   21:18 Hrs IST

For the quarter ending Dec 2021, Net sales (including other operating income) of Colgate-Palmolive (India) has increased 3.91% to Rs 1,280.12 crore compared to quarter ended Dec 2020. 

Operating profit margin has declined from 30.08% to 29.73%, leading to 2.68% rise in operating profit to Rs 380.55 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.56% to 26.45%.   Purchase of finished goods cost rose from 5.22% to 6.76%.   Employee cost increased from 7.00% to 7.88%.   Other expenses fell from 32.37% to 29.10%.   Selling and administration expenses fell from 15.97% to 11.82%.   

Other income fell 42.51% to Rs 5.68 crore.  PBIDT rose 1.51% to Rs 386.23 crore.  Provision for interest fell 20.11% to Rs 1.51 crore.  

PBDT rose 1.62% to Rs 384.72 crore.  Provision for depreciation down 3.60% to Rs 43.92 crore.  

Profit before tax grew 2.33% to Rs 340.80 crore.  Provision for tax was expense of Rs 88.47 crore, compared to Rs 84.68 crore.  Effective tax rate was 25.96% compared to 25.43%.

Profit after tax rose 1.60% to Rs 252.33 crore.  

Promoters' stake was 51.00% as of 31 December 2021 ,compared to 51.00% as of 31 December 2020 .  

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Colgate-Palmolive (India) has increased 6.76% to Rs 3,798.51 crore.  

Operating profit margin has declined from 30.58% to 29.92%, leading to 4.47% rise in operating profit to Rs 1,136.54 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.70% to 26.37%.   Purchase of finished goods cost fell from 6.98% to 6.16%.   Employee cost increased from 7.62% to 7.91%.   Other expenses rose from 29.48% to 29.64%.   Selling and administration expenses fell from 13.24% to 13.07%.   

Other income fell 26.68% to Rs 17.4 crore.  PBIDT rose 3.81% to Rs 1153.94 crore.  Provision for interest fell 20.35% to Rs 4.54 crore.  

PBDT rose 3.93% to Rs 1149.4 crore.  Provision for depreciation down 2.59% to Rs 133.5 crore.  

Profit before tax grew 4.86% to Rs 1,015.90 crore.  Provision for tax was expense of Rs 261.14 crore, compared to Rs 248.13 crore.  Effective tax rate was 25.71% compared to 25.61%.

Profit after tax rose 4.72% to Rs 754.76 crore.  

Promoters' stake was 51.00% as of 31 December 2021 ,compared to 51.00% as of 31 December 2020 .  


Full year results analysis

Net sales (including other operating income) of Colgate-Palmolive (India) has increased 6.99% to Rs 4,841.22 crore.  

Operating profit margin has jumped from 26.56% to 31.18%, leading to 25.63% rise in operating profit to Rs 1,509.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.70% to 25.68%.   Purchase of finished goods cost rose from 5.37% to 6.65%.   Employee cost increased from 7.31% to 7.52%.   Other expenses fell from 31.19% to 29.12%.   Selling and administration expenses fell from 13.77% to 12.86%.   

Other income fell 38.36% to Rs 30.35 crore.  PBIDT rose 23.11% to Rs 1539.98 crore.  Provision for interest fell 24.53% to Rs 7.26 crore.  Loan funds declined from Rs 101.49 crore as of 31 March 2020 to Rs 91.18 crore as of 31 March 2021.  Inventories rose to Rs 335.82 crore as of 31 March 2021 from Rs 296.92 crore as of 31 March 2020.  Sundry debtors were lower at Rs 117.08 crore as of 31 March 2021 compared to Rs 132.56 crore as of 31 March 2020.  Cash and bank balance rose to Rs 867.63 crore as of 31 March 2021 from Rs 421.27 crore as of 31 March 2020.  Investments declined from Rs 18.62 crore as of 31 March 2020 to Rs 18.61 crore as of 31 March 2021.  

PBDT rose 23.48% to Rs 1532.72 crore.  Provision for depreciation down 7.80% to Rs 182.5 crore.  Fixed assets declined from Rs 1,312.89 crore as of 31 March 2020 to Rs 1,209.57 crore as of 31 March 2021.  

Profit before tax grew 29.41% to Rs 1,350.22 crore.  Provision for tax was expense of Rs 314.83 crore, compared to Rs 226.9 crore.  Effective tax rate was 23.32% compared to 21.75%.

Profit after tax rose 26.81% to Rs 1,035.39 crore.  

Promoters' stake was 51.00% as of 31 March 2021 ,compared to 51.00% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 783.85 crore for year ended March 2021 from Rs 929.59 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 57.76 crore, compared to Rs 60.40 crore during the year ended March 2020. 

Management commentary: Mr. Ram Raghavan, Managing Director at Colgate-Palmolive (India) Ltd, said, Despite the macro challenges, our growth remains strong, consistent and driving the right balance between volume & revenue growth. Brand penetration strengthening reflects continued consumertrust in our brands. We continue with our strong innovation pipeline with new initiatives launched this quarter. In oral care, we launch Colgate Gum Expert, an advanced toothpaste that has curcumin extracts taken from turmeric, which is known for its healing properties, and is specially formulated for your gum health. It's unique formula starts working from the very first brushing to give you relief from gum bleeding while reversing the early signs of gum infection.

We are also excited about our entry into the Face Cleansing category with our new Palmolive range of Face care products. The range features unique and innovative forms such as face foams, masques & scrubs that have been created with a unique blend of premium natural ingredients and essential oils. As we continue to advance and scale our social and sustainability initiatives, this quarter witnessed the launch of Colgate RecyClean - a first of its kind toothbrush with bristles that are plant derived and BPA free while the handle is made from 100% recycled plastic. Additionally, we are pleased to announce our partnership with the NGO, Mission Smile, focused on performing cleft surgeries for children from low-income families across the country. This initiative further strengthens our purpose of making sure everyone has a future they can smile about.

Colgate-Palmolive (India) : Standalone Results

 

Quarter endedYear to DateYear ended
Particulars202112202012Var.(%)202112202012Var.(%)202103202003Var.(%)
Net Sales (including other operating income)1,280.121,231.933.913,798.513,558.036.764,841.224,525.096.99
OPM (%)29.7330.08-36 bps29.9230.58-65 bps31.1826.56463 bps
OP380.55370.612.681,136.541,087.884.471,509.631,201.6925.63
Other Inc.5.689.88-42.5117.423.73-26.6830.3549.24-38.36
PBIDT386.23380.491.511,153.941,111.613.811,539.981,250.9323.11
Interest1.511.89-20.114.545.7-20.357.269.62-24.53
PBDT384.72378.61.621,149.401,105.913.931,532.721,241.3123.48
Depreciation43.9245.56-3.6133.5137.05-2.59182.5197.94-7.8
PBT340.8333.042.331015.9968.864.861350.221043.3729.41
PBT before EO340.8333.042.331015.9968.864.861350.221043.3729.41
EO Income00-00-00-
PBT after EO340.8333.042.331015.9968.864.861350.221043.3729.41
Taxation88.4784.684.48261.14248.135.24314.83226.938.75
PAT252.33248.361.6754.76720.734.721035.39816.4726.81
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations252.33248.361.6754.76720.734.721035.39816.4726.81
EPS (Rs)*9.289.131.627.7526.54.7238.0730.0226.81
* EPS is on current equity of Rs 27.20 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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