Colgate Palmolive's first quarter earnings are expected to be steady in June quarter as volumes may increase marginally. Net profit is seen rising 17.8 percent year-on-year to Rs 159 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Revenue is likely to increase 10 percent to Rs 1,052 crore from Rs 957 crore during the same period, which may be impacted by increased excise duties.
Expiration of tax holidays in Baddi plant pushed excise duty payment higher to 9.6 percent from 5.7 percent earlier.
Analysts see overall volumes growth of 5-6.5 percent during April-June quarter.
Operating profit (earnings before interest, tax, depreciation and amortisation) may rise 17.2 percent year-on-year to Rs 227 crore and margin may expand 140 basis points to 21.6 percent in the quarter gone by.
Analysts expect gross margin to expand by 150-250 basis points due to lower commodity prices. They see moderating advertising spends in June quarter which may decline by 5-6 percent.
Higher employee cost and other expenses may offset gross margin expansion.
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