(Corrects to add dropped word 'India's' in headline)
Jan 29 (Reuters) - Colgate-Palmolive (India) reported a marginal rise in third-quarter profit on Thursday, benefitting from demand for its oral hygiene products, even as it took a one-time charge tied to the country's new labour codes.
The toothpaste maker's net profit rose 0.3% to 3.24 billion rupees ($351.93 million) for the quarter ended December 31, from 3.23 billion rupees a year earlier. It had posted a 2% profit fall a year ago.
Revenue from operations for the quarter increased 1.4% to 14.73 billion rupees from 14.52 billion rupees a year earlier.
The company took a one-time charge of 83.9 million rupees linked to India's new labour codes, but profit for the quarter excluding the item and taxes grew 2.7%.
For further results highlights, click here. (FULL STORY)
KEY CONTEXT
India's new labour codes, the country's biggest overhaul of workers' laws in decades, have dragged down the profits of companies across sectors, from Godrej Consumer Products and Mahindra Holidays and Resorts India to Wipro and Infosys.
However, several consumer firms have noted that Indian consumer demand has been gradually improving, as sustained moderation in inflation and the government's income-tax cuts increase appetite for spending.
"In the third quarter, our business saw a return to growth, driven by early positive signs in our core portfolio and sustained strong performance in the premium segment," Colgate-Palmolive (India)'s MD and CEO Prabha Narasimhan said in a statement.
PEER COMPARISON
Estimate Analysts'
s(next sentiment
12
months)
RIC PE EV/E Reve Prof Mean # of Stoc Div
BITD nue it rati analy k to yield
A grow grow ng* sts pric (%)
th th(% e
(%) ) targ
et**
Colgate 39 27.4 5.91 6.15 Hold 22 0.89 2.37
-Palmol .1 1
ive 7
(India
) Ltd
Godrej 47 33.5 9.43 18.8 Buy 34 0.85 1.71
Consume .8 1 4
r 8
Product
s Ltd
Hindust 48 33.4 7.57 9.38 Buy 21 0.86 1.81
an .3 2
Unilev 4
er Ltd
Dabur 43 32.3 8.45 11.4 Hold 37 0.96 1.55
India .6 9 7
Ltd 3
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the price target
OCTOBER TO DECEMBER STOCK PERFORMANCE
- All data from LSEG
($1 = 91.8930 Indian rupees)
(Reporting by Komal Salecha and Surbhi Misra in Bengaluru; Editing by Jonathan Ananda)
