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Colgate-Palmolive India Q3 profit jumps 35% to Rs 330 cr on lower expenses

Net profit rose to Rs 330 crore for the quarter ended Dec. 31 from Rs 243 crore rupees a year earlier

During the second wave, consumers are behaving differently as people are buying  more essential supplies online, price inflation in personal care is collapsing. (Photo: Bloomberg)

Total expenses fell 0.5%, helped by lower inventory and raw material costs (Photo: Bloomberg)

Reuters BENGALURU

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Colgate-Palmolive (India) reported a 35.7% jump in third-quarter profit on Monday, aided by healthy urban demand and a fall in expenses.
 
Net profit rose to Rs 330 crore for the quarter ended Dec. 31 from Rs 243 crore rupees a year earlier.
 
Sales of consumer goods makers have been boosted by urban consumers with higher average income, even in the face of elevated prices of essential goods.
 
Total expenses fell 0.5%, helped by lower inventory and raw material costs.
 
The Indian arm of the U.S. consumer goods major reported an 8.2% increase in sales to Rs 1,386 crore, helped by its core oral care category.
 
The company also ran a campaign during the quarter that reached over 300 million people in urban India, CEO Prabha Narasimhan said in a statement.
 
Rival Hindustan Unilever posted a smaller-than-expected increase in quarterly profit on Friday, as competition intensified in the consumer goods sector and demand in rural markets remained weak.

Additionally, Dabur India, set to report results next week, said earlier this month that it expects mid- to high-single-digit growth in consolidated revenue for the third quarter, citing subdued pricing growth and disparity in demand between rural and urban areas.
 
Shares of Colgate-Palmolive rose 0.26% so far this year, contrasting a 1.8% decline in the Nifty FMCG index.

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First Published: Jan 22 2024 | 4:18 PM IST

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