Colgate-Palmolive, the marketer of brands such as Palmolive Charmis moisturizing cream, Halo shampoo and Axion dishwashing paste, reported a 74.48 per cent increase in its quarterly profit on Monday and gave a positive forecast through next year. The company which competes with the Indian arm of Anglo Dutch Unilever saw strong volume growth in the toothpaste category, lower advertising and sales promotion costs, increase in other income and significant decline in effective tax rate boosting profits way ahead of sales.

Colgate’s net profit rose to Rs 115.58 crore in the third quarter of financial year 2011-2012. Net sales for the quarter was up 19.95 per cent to Rs 669.57 crore in the quarter ended December 2011. “The company achieved 20 per cent growth over the same quarter of the previous year, led by 15 per cent volume growth in the toothpaste category,” the company said in a press statement. Effective tax rate for the quarter has fallen to 22 per cent in December 2011 quarter from 27 per cent in the year ago period. Interest costs too fell 24 per cent to Rs 57 lakh.

The results encouraged investors who had a cautious outlook on the personal care major’s shares. “The company’s EBITDA grew by 73 per cent YoY to Rs 129 crore on significant decline in advertising and sales promotion (ASP) expenses,” said brokerage firm KR Choksey.