Colgate Palmolive's net profit may rise 12.9 percent to Rs 148 crore in October-December from Rs 131 crore in year-ago period. According to CNBC-TV18 poll, its revenues in Q3 may grow 4.4 percent at Rs 1040 crore against Rs 996 crore year-on-year.
Q3 EBITDA is likely to grow 18 percent at Rs 230 crore versus Rs 194 crore while EBITDA margins may jump 22.1 percent versus 19.5 percent (Y-o-Y).
Analysts polled by CNBC-TV18 see 3-6 percent volumes growth with a 1 percent price/mix led growth in Q3. Analysts also feel sales may be impacted by higher excise duty at its Baddi plant and feel intensifying competitive pressures may eat into markets share. Dabur’s Meswak, Patanjali have gained serious headway in company's existing markets. Analysts expect gross margin expansion of 50 basis points points owing to benign commodity environment and company trying to tide over weakness in rural demand by expanding reach. Advertising and promotions spends with respect to sales to be lower.
Negative surprise on the margins may pressurise the stock. Commentary on strategy to deal with intensifying competition will be key to watch.
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