Colgate-Palmolive (India) (500830) Q4 96/97 earnings summary

Executive summary

• Net sales rose 16.5% YoY to Rs. 904.54 crore; profit after tax increased to Rs. 78.93 crore from Rs. 77.58 crore, despite an estimated Rs. 10 crore excise-inventory cost.

• Oral Care leadership held amid competition, while launches expanded Personal Care and Household Surface Care; growth plans included vertical integration and a new Nepal operation.

Financial highlights

• Gross sales increased to Rs. 960.60 crore from Rs. 850.11 crore; sales net of excise were Rs. 904.54 crore versus Rs. 776.51 crore.

• Profit before tax was Rs. 143.93 crore versus Rs. 144.29 crore; profit after tax was Rs. 78.93 crore versus Rs. 77.58 crore.

• Other income rose to Rs. 17.62 crore from Rs. 14.84 crore; materials cost increased to Rs. 542.01 crore from Rs. 464.24 crore.

• Excise duty expense fell to Rs. 56.06 crore from Rs. 73.60 crore; lower duty rates on inventories absorbed about Rs. 10 crore, with the benefit passed to consumers.

Outlook and guidance

• Dicalcium Phosphate facility at Aurangabad was expected to become operational in Q3 1997, supporting toothpaste supply and vertical integration.

• Axion Dishwashing Paste was slated for national rollout after its Maharashtra test launch.

• Nepal subsidiary planned a toothpaste and toothpowder facility at Hetauda, scheduled for commissioning in Q2 1998; phased fixed-asset investment of Rs. 28 crore.

• Five-year rural expansion plan aimed to extend product access to 40,000 additional villages.