Colgate-Palmolive (India) (500830) Q4 98/99 earnings summary

Executive summary

• FY1998-99 net sales fell to Rs 955.32 crore from Rs 971.80 crore; profit after tax declined to Rs 45.67 crore from Rs 80.07 crore.

• Profitability was affected by sustained investment in strategic infrastructure, new product launches and brand building; the outlook called for reasonable sales growth in FY1999-2000.

Financial highlights

• Gross sales were Rs 998.22 crore vs Rs 1,019.73 crore; other income rose to Rs 16.31 crore from Rs 12.47 crore.

• PBT was Rs 75.38 crore vs Rs 127.01 crore; PAT was Rs 45.67 crore vs Rs 80.07 crore.

• Net profit after tax was Rs 45.67 crore; cash profits were Rs 70.30 crore vs Rs 101.24 crore.

• Materials cost rose to Rs 562.26 crore from Rs 552.98 crore; other expenses increased to Rs 275.43 crore from Rs 252.31 crore.

• Operating cash flow was Rs 124.86 crore; cash and cash equivalents closed at Rs 65.25 crore, up from Rs 27.68 crore.

Outlook and guidance

• Management expected reasonable sales growth in FY1999-2000, supported by strategic initiatives and an anticipated revival in rural demand.

• The Hetauda plant reached rated capacity utilisation in June 1999; the outlook targeted expansion of domestic and export business.