FMCG firm Colgate-Palmolive today posted a marginal decline in net profit to Rs 99.68 crore for the quarter ended September 30, 2011, on account of voluntary retirement scheme payouts to workers of its closed plant in Hyderabad.
The company, which sells oral and dental hygiene products under the brand 'Colgate', had reported a net profit of Rs 100.30 crore for the quarter ended September 30, 2010, Colgate Palmolive said in a filing to the BSE.
During the quarter under review, the company registered net sales of Rs 657.24 crore, a 19.11% increase from Rs 551.77 crore in the year-ago period.
"Voluntary retirement scheme was offered to the employees at our tooth-powder factory in Hyderabad. All the employees have availed the benefit of the said scheme (cost Rs 8.22 crore) and the manufacturing operations have discontinued effective September 29, 2011," the company said in a statement.
The firm said it achieved a volume growth of 13% during the quarter vis-a-vis the same period a year ago on the back of flagship brands like 'Colgate Maxfresh', 'Colgate Plax' and 'Colgate Toothbrush'.
"Prudent price increases and cost management has enabled the company to maintain its gross margin at 60% for this quarter despite significant inflationary pressure," it said.
Scrips of Colgate-Palmolive were trading at Rs 996.05 apiece on the BSE, down at 0.27% from their previous close.
