Toothpaste volume growth came in at 4 percent, meeting street expectations.
Shares of Colgate Palmolive rallied 4.5 percent intraday on July 18 after first quarter earnings met analyst expectations.
This also could be a relief rally as the stock fell 16 percent in 2019.
The profit in June quarter declined 10.7 percent year-on-year to Rs 169.1 crore, but after adjusting for exceptional gain reported in year-ago quarter, the bottomline increased by 5 percent YoY.
Colgate reported revenue growth of 4.2 percent year-on-year, driven by a domestic net sales growth of 6 percent YoY. Toothpaste volume growth came in at 4 percent, meeting street expectations, which was similar to previous as well as year-ago quarter.
"The quarter saw a moderation in demand impacted by lower than expected growth in the rural markets. We do consider this trend to be temporary and expect a pickup over the coming quarters," said Issam Bachaalani, Managing Director.
On the operating front, numbers were ahead of analyst estimates as earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 6.6 percent and margin expanded 60 bps YoY against CNBC-TV18 poll estimates of 3.5 percent growth and 50 bps contraction respectively.The stock was quoting at Rs 1,208.10, up Rs 40.40, or 3.46 percent on the BSE at 13:38 hours IST.The Great Diwali Discount!
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