Marico Q1 results: Net profit grows 15% to Rs 427 crore, beats Street estimates

FMCG major Marico on Friday reported a consolidated net profit of Rs 427 crore for the quarter ended June, beating analysts' estimates. The Mumbai-based company — whose popular brands include Parachute, Nihar, Saffola, Livon and Set Wet — had reported a net profit of Rs 371 crore for the corresponding period a year ago. 

Its revenue came in at Rs  2,477 crore for the first quarter of the current financial year, as against Rs 2,558 crore for the year-ago period, according to a regulatory filing.  

According to Zee Business research, Marico's quarterly net profit was estimated at Rs 407 crore and revenue at Rs 2,593 crore.

“The year has started on a mixed note with domestic volume growth marred by one-offs, while the international business was resilient in a challenging environment. However, we remain confident of an improving trajectory of growth in the domestic business and sustained momentum in the international business. We have delivered robust margin expansion on the back of a softening input cost environment and expect to deliver healthy profitability this year," said Saugata Gupta, MD and CEO, Marico. 

"We will continue to drive sustainable and profitable volume-led growth by maintaining focus on our strategic priorities of diversification, go-to-market transformation, digital capability building and fostering an inclusive organizational culture," he said. 

The company reported revenue of Rs 1,827 crore from its India business for the June quarter as against Rs 1,921 crore a year ago. Revenue from its international business expanded two per cent on a year-on-year basis to Rs 650 crore, according to the filing. 

Marico said volume trends in the FMCG sector seem to be improving and domestic volume growth looks resilient despite the material impact of one-offs. It said its international business sustained its strong growth trajectory.

In the financial year ending March 2024, the company's expectation of a gradual volume recovery remains intact, especially in the rural segment, according to a statement. 

However, the impact of erratic weather patterns on agri-incomes will be monitored, it added.

For the full year, Marico expects a record operating margin of more than 20 per cent with incremental gross margin tailwinds in the June quarter.

Marico shares ended 3.4 per cent higher at Rs 573.3 apiece on BSE ahead of the earnings announcement. In the June quarter, the Marico stock grew 10.7 per cent, in line with a 10.5 per cent rise in the benchmark Nifty index.

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