Colgate-Palmolive India Ltd has reported a 4.3% increase in net profit for the September quarter, helped by double-digit sales growth.
The toothpaste and oral care maker earned a net profit of Rs 341.57 crore in the quarter. In the same period a year earlier, it made Rs 327.51 crore.
Sales did better than profit. Revenue rose 12.22% to Rs 1,691.57 crore, so top-line growth was well ahead of the gain in earnings.
The company also improved its gross margin, which widened by 40 basis points from a year earlier. Gross margin shows how much of each rupee of sales is left after the direct cost of making the products. The improvement reflects the company’s cost management and its pricing actions during the period.
In short, Colgate-Palmolive India sold more and kept a little more of each sale after production costs. Even so, profit grew far more slowly than sales for the quarter.