Colgate-Palmolive (India) (500830) Q4 05/06 earnings summary

Executive summary

• FY06 sales rose 17% to ₹1,124.19 crore; net profit reached a record ₹137.60 crore, up 21% YoY despite ₹24.04 crore of impairment, accelerated depreciation and investment diminution charges.

• Consolidated revenue was ₹1,153.18 crore and consolidated PAT ₹140.04 crore; consolidated EPS was ₹10.30.

Financial highlights

• Standalone total revenue was ₹1,149.80 crore vs ₹998.45 crore; PBT was ₹187.88 crore vs ₹178.14 crore, and PAT was ₹137.60 crore vs ₹113.29 crore.

• Sales excluding excise duty were ₹1,124.19 crore vs ₹964.22 crore; other income declined to ₹25.61 crore from ₹34.23 crore.

• Tax provision fell to ₹50.28 crore from ₹64.85 crore; FY06 earnings included ₹24.04 crore for impairment, accelerated depreciation and Nepal subsidiary investment diminution.

• Operating cash flow was ₹184.60 crore vs ₹115.34 crore; cash and cash equivalents closed at ₹87.97 crore vs ₹56.14 crore.

Outlook and guidance

• The toothpaste market opportunity and low per-capita usage underpin expectations for continued dentifrice market growth; planned drivers include innovation, marketing and market expansion.

• Baddi toothpaste facility commissioning was completed; production of different variants is planned to maximize capacity utilization and tax benefits.