Colgate Palmolive receives ₹170 crore tax liability notice

Shares of Colgate Palmolive traded down after the household and consumer products manufacturer received a ₹170 crore income tax liability from the Income Tax Authority.

In a regulatory filing on October 30, Colgate Palmolive said that it received a transfer pricing order from the Income Tax Authority for the assessment year 2021-22, disallowing certain international transactions.

In the filing, the company said that it is awaiting completion of the draft assessment proceedings and after that will make an application before the dispute resolution panel. Colgate Palmolive India added that there is no impact on financial, operation or other activities of the company due to this transfer pricing order.

On October 26, Colgate Palmolive (India) announced its Q2FY24 earnings. Net profit for the quarter ended September 2023 was ₹340.05 crore, up by 22.31 percent on-year from the previous fiscal, while revenue grew 6.09 percent on-year to ₹1,462.38 crore.

For the same period, earnings before interest, tax, depreciation and amortization (EBITDA) was ₹482.2 crore, up from ₹408 crore in the previous fiscal, while EBITDA margin for the period was 32.8 percent, up from 29.4 percent in Q2FY23.