Shares of Colgate Palmolive were trading marginally lower on 22 November after the company informed that it had received a Rs 1 lakh GST penalty.

In its regulatory filing, the company said that the State Goods and Service Tax Officer had conducted a search at the company’s Chennai warehouse from 16-17 November.

Post the inspection, the company was slammed with a penalty of Rs 1 lakh for “minor procedural non-compliance under Section 125 of CGST Act and SGST Act and not any specific suppression or willful misstatement done by the company”.

In its quarterly earnings for July-September, the company reported a 22.31% year-on-year (YoY) increase in its consolidated net profit to Rs 340.05 crore for the quarter from Rs 278.02 crore reported in the year-ago quarter.

The company’s revenue also saw a surge of 6.09% YoY to Rs 1,462.38 crore during the quarter under review.

The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs 482.2 crore for Q2FY24 against the Rs 408 crore reported in the same quarter of the previous fiscal year.

The EBITDA margins expanded to 32.8% during the quarter from 29.4% recorded in the year-ago quarter.

At 1:33 pm, the shares of Colgate Palmolive were trading 0.37% higher at Rs 2,170.35 on NSE.