Marico Q1 results preview: EBITDA to likely log low double-digit growth; margins seen expanding

Marico- the owner of famour Saffola and Parachute among others, is slated to report its Q1 earnings on Monday (August 5). Zee Business Research expects the FMCG company to report improved margins in the June quarter. The consolidated PAT at the company is likely to grow 9 per cent on-year to Rs 466 crore as against Rs 427 crore. Revenue, meanwhile, is seen to inch higher by 8 per cent to Rs 2,684 crore in comparison to Rs 2,477 crore in the same quarter last year.

The operating profit or EBITDA is estimated to grow by 11 per cent to Rs 636 crore, while margins are seen climbing to 24 per cent from 23 per cent in the same quarter last year.

Volume at the company during the reporting quarter is estimated to grow by 3-4 per cent, while value growth quantum is forecasted to be at 6 per cent. The company's Parachute brand is likely to post 2 per cent volume and 8 per volume growth during the review period. 

Also, the company's gross margins are expected to log an increase on the back of improved portfolio mix during the quarter. Further, given the likely improved volume growth in India business, the company's revenue is expected to soar higher. Furthermore, in the remaining months of the year, volume is expected to improve consistently. 

The company's international business logged over 10 per cent growth in CC terms during the quarter.

Marico share price performance

The stock in the last one year has gained 19 per cent, while at the time of writing the copy ahead of its results it traded at Rs 662.8, down nearly 2 per cent.