Colgate Palmolive loses early gains after Rs. 170 crore Income tax notice

Colgate Palmolive’s shares opened at Rs. 2,089.25, up by 1.7 % after the consumer and household products manufacturer received an income tax liability value of Rs. 170 crore but traded down at Rs. 2,085.25 on October 31 i.e. today.

On October 30, the Income Tax Authority sent a transfer pricing order to the Colgate Palmolive company for the assessment year 2021-22, disallowing certain international transactions.

At the time of filing, the company added its statement that it is awaiting completion of the draft assessment proceedings and after that will make a request before the dispute resolution panel.

Further, the oral care company added that due to this transfer pricing order, there is no impact on the financial operation or other activities of the company.

Colgate Palmolive India declared its Q2FY24 earnings. Net profit for the quarter ended September 2023 was Rs. 340.05 crore, about 22.31 % higher on a year from the previous financial year, while revenue raised 6.09 % on a year to Rs. 1,462.38 crore.

For the same period, Earnings Before Interest Tax Depreciation and Amortization (EBITDA) was Rs. 482.2 crore, Rs. 408 crore higher than the previous financial year, while EBITDA margin was 32.8 percent, up from 29.4 percent in Q2FY23.