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 Colgate Palmolive (India) reported a 16% rise in second-quarter profit on Thursday helped by its expansion into rural markets and demand for its premium personal care products.

The toothpaste maker's net profit rose to 3.95 billion rupees ($47 million) in the quarter ended Sept. 30, from 3.40 billion rupees a year earlier.

In India, rural sales have outperformed urban on a year-on-year basis for the third quarter in a row for consumer goods, helped partly by higher government spending to boost the rural economy.

Colgate Palmolive's efforts to promote oral health programs in rural areas helped drive demand for its products in the hinterlands, while demand for its premium products such as 'Colgate Total' and 'Colgate Visible White' was strong among its urban consumers.

Oral care products contribute around 90% to the company's total revenue.

"Toothpaste achieved high single-digit volume growth... Toothbrush continued to grow at double digits with rapid premiumisation," said MD and CEO Prabha Narasimhan.

The company's sales rose 10% to 16.09 billion rupees, while its domestic net sales grew 10.5% during the quarter.

Meanwhile, the company's raw material costs surged 20% during the quarter, pushing its total expenses up by 13%.

Among other consumer goods makers, Hindustan Unilever posted a smaller-than-expected profit amid higher expenses on Wednesday, while Dabur India, which makes Dabur Red toothpaste, is yet to report earnings.