Colgate-Palmolive (India) Limited increased net sales 12.2% for the September quarter, while NDTV Profit reported margin pressure and a lower Systematix target in its post-results review.
The company reported net sales of ₹1,692 crore for the quarter ended Sept. 30, compared with ₹1,507 crore a year earlier. Net profit after tax was ₹342 crore, up from ₹328 crore. It said profit grew 5.5% after excluding one-off and exceptional items, including a charge related to the goods and services tax inverted-duty structure.
Gross margin reached 69.6%, up 40 basis points year over year, according to the company. Toothpaste volume grew at a high-single-digit rate, led by the premium range and Colgate MaxFresh. The company also reported double-digit domestic growth for a second consecutive quarter.
Systematix's analysis, as reported by NDTV Profit, put operating margin at 27.8%, down 2.9 percentage points from a year earlier and 2.4 points from the June quarter. NDTV Profit described the figure as the lowest in more than four years. The outlet also reported that Systematix cut its target price to ₹1,870 from ₹2,080 and retained its Hold rating. The brokerage lowered its earnings-per-share estimates for FY27 through FY29 by 1% to 2% and moved its valuation date to September 2028, using a 32-times price-to-earnings multiple.
Informist reported that advertising expense rose to ₹3.15 billion in July through September from ₹2.25 billion a year earlier. NDTV Profit said Systematix's analysis put advertising and promotion spending at 18.5% of sales, its highest share in more than 11 years. The company said it increased spending on brand development and premiumization. Systematix linked the additional advertising to growth in the premium range as competition continued.
The board declared a first interim dividend of ₹24 per share for FY27. Nov. 2 is the record date, and payments are scheduled to begin Nov. 19.
