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Colgate Q1 Review – Revenues In Line But Margin Miss: Dolat Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Colgate-Palmolive India Ltd.’s Q1 FY22 revenues were in line, but Ebitda and adjusted profit after tax were below our expectation.

Despite challenging business conditions, all categories sustained growth momentum.

On a two year compound annual growth rate basis, revenue growth was 3.7%, marginally lower compared to our estimate.

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Continuous expansion in gross margin was a key positive. With better product mix, and calibrated price increases, we expect gross margins to remain healthy.

Going ahead, government efforts to increase farmer’s wages and focus on rural infrastructure should boost oral care category.

However, increase in competition and better product offerings by competitors like Dabur India Ltd. remains a key challenge for Colgate.

Click on the attachment to read the full report:

Dolat Capital Colgate Palmolive Q1FY22 Result Update.pdf

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