colgate palmolive shares drop as margin decline overshadows profit growth

Colgate-Palmolive India's net profit for the second quarter increased by 16.2% year-on-year to Rs 395.05 crore, compared to Rs 340.05 crore in the same period last fiscal year.

Sales also saw a growth of 10.04% to Rs 1,609.21 crore, up from Rs 1,462.38 crore a year earlier, indicating overall growth across its product portfolios.

However, the company's EBITDA growth was limited to 3%, falling short of market expectations due to a decline in margins. Management attributed this moderation in growth prospects to a challenging demand environment and increased promotional activities impacting margins.

As a result, Colgate-Palmolive shares declined by 5% following the earnings report.

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