In recent developments, Colgate Palmolive India Ltd. has been served a transfer pricing order by the Income Tax Authority. The order, which pertains to the assessment year 2022, led to the termination of certain international transactions and resulted in a liability of Rs 170 crore, according to the company's exchange filing. In response to this situation, Colgate Palmolive India plans to approach the Dispute Resolution Panel while draft assessment proceedings are still underway.
Despite this financial challenge, the company has reported no impact on its operations or financial standing. Today, Colgate Palmolive India released its consolidated figures for Q2 FY24, displaying an encouraging upward trend in its financial performance.
The company's revenue saw a boost of 6.02%, rising to Rs 1,471.09 crore. Its Profit After Tax (PAT) also experienced a significant jump of 22.31%, reaching Rs 340.05 crore compared to Rs 278.02 crore from the same period last year.
Furthermore, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed an increase of 18.17%, amounting to Rs 482.13 crore with a margin of 32.77%.
Despite these positive financial results, shares of Colgate Palmolive India experienced a slight dip on Monday, falling by 1.24% to Rs 2,054.00 each. This drop contrasts with the BSE Sensex's rise of 0.52% on the same day.
The company's ongoing tax dispute and its impact on future operations and finances remain to be seen as it continues to navigate through this challenging situation.
InvestingPro Insights
In light of the recent developments and financial results reported by Colgate Palmolive India, it is beneficial to consider some real-time data and insights provided by InvestingPro.
According to InvestingPro data, Colgate Palmolive India has a robust market cap of $60.53 billion. The company's P/E ratio stands at 38.8, indicating a high earnings multiple. This aligns with the InvestingPro Tip that the company is trading at a high earnings multiple. Additionally, the company's revenue growth over the last twelve months as of Q3 2023 is 7.86%, which corroborates the InvestingPro Tip that the company's revenue growth has been accelerating.
Furthermore, the company's gross profit margin for the same period is an impressive 57.23%, which is in line with the InvestingPro Tip that the company has impressive gross profit margins.
For more detailed information and additional tips, readers can visit the InvestingPro platform, which offers 18 more insightful tips about Colgate Palmolive India. You can access these tips by subscribing to InvestingPro's premium service at InvestingPro Pricing.
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