Shares of Colgate Palmolive Ltd. fell the most in a month after the company reported a 22.6 percent drop in net profit for the October to December quarter.
Net profit fell to Rs 127.8 crore from Rs 165.1 crore in the corresponding quarter last year. The consensus of analysts tracked by Bloomberg had pegged the bottomline at Rs 140 crore.
Revenue fell 8.4 percent to Rs 991 crore in the third quarter as compared to Rs 1,082 crore in the year ago period, the company said in its stock exchange filing. It attributed the decline in the topline to the demonetisation of old high-value currency notes in early November.
Earnings before interest, tax, depreciation and amortisation dropped 10.2 percent to Rs 214.2 crore compared to Rs 238.5 crore in December 2015. EBITDA margins contracted 40 basis points to 21.6 percent from 22 percent last year.
The company said that it has taken proactive steps to counter the liquidity crunch in the market as a result of the demonetisation.
Issam Bachaalani, Managing Director, Colgate Palmolive (India)
The company continues to maintain its leadership position in the toothpaste and toothbrush category in 2016 with the toothpaste category commanding a 55.4 percent market share while the number with the toothbrush category stood at 47 percent, the stock exchange filing added.
Shares of the company were trading lower by 1.1 percent at Rs 888.30, after the earnings announcement.