Colgate-Palmolive shares decline nearly 4% as Q4 net profit drops 6.5%, misses street estimates
By Aditya Bhagchandani Published on May 22, 2025, 09:22 IST
Shares of Colgate-Palmolive (India) Ltd fell 3.97% to ₹2,553.70 on Thursday, following the announcement of its Q4FY25 results which showed weaker-than-expected earnings. The stock had closed at ₹2,659.30 in the previous session.
The company's net profit for the quarter ended March 31, 2025, declined 6.5% year-on-year to ₹355 crore, missing CNBC-TV18's estimate of ₹358 crore. The fall in profits was attributed to softening urban demand and intensifying competition. Revenue also dipped 1.9% YoY to ₹1,462.5 crore, lower than the expected ₹1,527 crore.
EBITDA for the quarter came in at ₹498 crore, a 6.4% drop compared to ₹532.2 crore in the same period last year. EBITDA margin narrowed to 34% from 35.7% YoY, though it exceeded the analyst forecast of 32.6%.
Despite the weak Q4 showing, the company posted a healthy performance for the full fiscal year. Net sales for FY25 rose 6.3% YoY to ₹5,999 crore, and net profit grew 8.5% to ₹1,437 crore. Domestic sales increased 5.6%, with toothpaste reporting mid-single-digit value growth and toothbrush sales maintaining momentum.
The board declared a second interim dividend of ₹27 per share, bringing the total FY25 dividend to ₹51 per share. The dividend payout of ₹734 crore will be made on or after June 16, 2025, with May 28, 2025, as the record date.
CEO Prabha Narasimhan acknowledged Q4 headwinds but reaffirmed the company's strategic direction. 'Despite short-term macroeconomic pressures, we remain steadfast in our commitment to strategic priorities,' she stated, emphasizing continued reinvestment through the 'Funding the Growth' initiative.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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