Shares of Colgate Palmolive were trading 2% above on 31 October despite the company having received a Rs 170 crore income tax liability notice. 

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

The company added that they are awaiting the compilation of the draft assessment proceedings, and after that, the company will make an application before the dispute resolution panel. The company said that due to this transfer pricing order, there is no impact on financial operations or any other activities. 

On 26 October, the company announced its quarterly earnings for July-September and recorded a 22.31% year-on-year (YoY) increase in its net profit at Rs 340.05 crore and a 6.09% YoY increase in its revenue at Rs 1,462.38 crore. 

The EBITDA (earnings before interest, tax, depreciation and amortisation) was at Rs 482.2 crore for Q2FY24 against Rs 408 crore reported in Q2FY23, whereas the EBITDA margin during the period was 32.8%. 

At 10:31 am, the shares of Colgate Palmolive were trading 1.00% above at Rs 2,073.25 on NSE.