REFILE-India's Colgate-Palmolive posts marginal profit rise as tax-cut tailwind offsets one-time charge

Jan 29 (Reuters) - Colgate-Palmolive (India) COLG.NS reported a marginal rise in third-quarter profit on Thursday, benefitting from demand for its oral hygiene products, even as it took a one-time charge tied to the country's new labour codes.

The toothpaste maker's net profit rose 0.3% to 3.24 billion rupees ($351.93 million) for the quarter ended December 31, from 3.23 billion rupees a year earlier. It had posted a 2% profit fall a year ago.

Revenue from operations for the quarter increased 1.4% to 14.73 billion rupees from 14.52 billion rupees a year earlier.

The company took a one-time charge of 83.9 million rupees linked to India's new labour codes, but profit for the quarter excluding the item and taxes grew 2.7%.

For further results highlights, click here. (FULL STORY)

KEY CONTEXT

India's new labour codes, the country's biggest overhaul of workers' laws in decades, have dragged down the profits of companies across sectors, from Godrej Consumer Products GOCP.NS and Mahindra Holidays and Resorts India MAHH.NS to Wipro WIPR.NS and Infosys INFY.NS.

However, several consumer firms have noted that Indian consumer demand has been gradually improving, as sustained moderation in inflation and the government's income-tax cuts increase appetite for spending.

"In the third quarter, our business saw a return to growth, driven by early positive signs in our core portfolio and sustained strong performance in the premium segment," Colgate-Palmolive (India)'s MD and CEO Prabha Narasimhan said in a statement.

PEER COMPARISON

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The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the price target

OCTOBER TO DECEMBER STOCK PERFORMANCE

- All data from LSEG

($1 = 91.8930 Indian rupees)