Colgate
Colgate was in the news today after it said that it will begin commercial production of toothbrush at the its new manufacturing facility at Sricity, Andhra Pradesh on 1 April 2015. Further, the company said in the month of March 2015, the said new facility was commissioned and fully tested. The state of the art manufacturing facility will have an installed capacity to produce 220 million pieces of toothbrushes by the end of the year. But before the market could cheer about this this news, the company stated that its facility in Himachal Pradesh will stop enjoying the excise benefits from 21st April’15 – it had enjoyed a 10-year tax benefit . Thus from FY16, all its IT benefits will expire and it will be liable to pay a lot more. And this news pushed down the stock which remains in the red.
Financially, the company ended Q3FY15 with a 16% (YoY) rise in net profit at Rs.131 crore on a 12% jump in total income at Rs.996 crore. Volume growth was trong at 5% on the back of toothpaste where it continues to remain the market leader with a 56.7% market share. At end of 9MFY15, it paid Rs.151 crore tax, which was 38% of net profit and at end of FY14, tax outgo was at 35%. From FY16, this outgo will be much higher.