Colgate Q2 PAT may rise 1% at Rs 146.5 cr: Motilal Oswal
According to Motilal Oswal, Colgate Palmolive (India) may report a 12.9 percent growth quarter-on-quarter (up 1 percent Y-o-Y) in net profit at Rs 146.5 crore.
October 24, 2013 / 18:57 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the consumer sector. The brokerage house expects Colgate Palmolive (India) to report a 12.9 percent growth quarter-on-quarter (up 1 percent Y-o-Y) in net profit at Rs 146.5 crore.
Revenues of Colgate Palmolive (India) are expected to increase by 4.9 percent Q-o-Q (up 14.5 percent Y-o-Y) to Rs 885.9 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 14.5 percent Q-o-Q (up 7.7 percent Y-o-Y) to Rs 189.3 crore.Motilal Oswal's Report on Colgate Palmolive (India):We expect sales growth of 15 percent Y-o-Y to INR 8.85 billion; toothpaste volume growth is estimated at 10 percent.We expect 130bp contraction in EBITDA margin to 20.9 percent on account of higher ad spends due to product launches and heightened
promotional activity post P&G's Oral B launch.Lower tax rate in the base quarter (19.4 percent in 2QFY13 v/s estimated 25 percent in 2QFY14) would result in flat PAT. P&G's Oral B launch has not generated much response as yet in the market. However, competitive intensity has stepped up further.The stock trades at 27.4x FY15E EPS.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
