Marico Q1 results preview: Net profit likely to rise 8% to Rs 407 crore, margin may improve by 100 bps

FMCG major Marico is all set to report its financial results for the June quarter on Friday, July 28. Analysts expect the Mumbai-based FMCG major — whose popular brands include Parachute, Nihar, Saffola, Livon and Set Wet — to stage a steady performance on the back of improving demand. 

According to Zee Business research, Marico's quarterly consolidated net profit is estimated to be at Rs 407 crore, translating to growth of eight per cent compared with the corresponding period a year ago. The analysts peg its revenue at Rs 2,593 crore for the first quarter of the current financial year as against Rs 2,558 crore for the year-ago period. 

Zee Business analysts see the company reporting Rs 561 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA), marking a year-on-year increase of 6.3 per cent. They peg the company's margin —  a key measure of profitability — for the three-month period at 21.6 per cent as against 20.6 per cent a year ago. 

Marico is expected to register an increase of 3-4 per cent in domestic volumes for the June quarter due to one-time internal as well as external factors, with a slight decline in Parachute coconut oil sales, according to the research. 

How Marico fared in Q4

For the fourth quarter of the financial year 2022-23, Marico reported a better-than-expected 18.7 per cent year-on-year increase in net profit to Rs 305 crore. 

Its revenue grew 3.7 per cent to Rs 2,240 crore for the March quarter compared with the corresponding period a year ago, according to a regulatory filing.  

The company's margin improved by 150 basis points to 17.5 per cent. 

Marico shares

Marico shares grew 10.7 per cent in the June quarter, in line with a 10.5 per cent rise in the benchmark Nifty index. As of July 26, the Marico stock had risen 3.4 per cent in the past year, underperforming an 18.5 per cent gain in the headline gauge.

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