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HomeNewsBusinessEarningsColgate Q4 profit seen up 4.5%, volume growth may be tepid

Colgate Q4 profit seen up 4.5%, volume growth may be tepid

Analysts expect tepid volumes growth as competition intensified. They expect sales to be impacted by higher excise duty at Baddi plant and increase in excise duty by 6-9 percent.

May 23, 2016 / 17:01 IST
     
     
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    Consumer products company Colgate Palmolive's fourth quarter net profit is seen rising 4.5 percent to Rs 171 crore and revenue is likely to increase 3.8 percent to Rs 1,068 crore compared to year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

    Analysts expect tepid volumes growth as competition intensified. They expect sales to be impacted by higher excise duty at Baddi plant and increase in excise duty by 6-9 percent.

    Even competition from Patanjali & Dabur may impact sales on lower price points.

    Operating profit (earnings before interest, tax, depreciation and amortisation) may grow 7.4 percent to Rs 266 crore and margin may expand 80 basis points to 24.9 percent compared to same period last fiscal.

    Analysts expect gross margin to expand only 100 basis points YoY. They see increase in inputs like Sorbitol and essential oil prices.

    Factors to watch out for:-Market share update-Pick up in volumes which have been subdued over last few quarters-Commentary on ad-spends, which are expected to be flat YoY

    first published: May 23, 2016 05:01 pm

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