The Hindu Business Line : Marico PAT up 20% at Rs 17.7 cr

MARICO Industries Ltd in its consolidated operations has turned in a 20 per cent increase in profit after tax at Rs 17.7 crore. Turnover grew by 12 per cent to Rs 260 crore.

Sustained volume growth, especially in the high margin portfolio, helped the company to report upturn in revenues and profits.

Marico has achieved a CAGR of 11 per cent in overall sales volumes.

This has been through significant investment in new products and businesses, strengthening of core brands - Parachute and Saffola, as also high margin portfolio and growth in market shares in key categories, the company said in a news release.

ROCE (return on capital employed) was at 33 per cent and RONW (return on net worth) at 34 per cent.

Consumer product business posted a turnover of Rs 252 crore, up 10 per cent from the year-ago quarter.

The new businesses of Kaya and Sundari posted a combined turnover of nearly Rs 7.5 crore, up from Rs 2.5 crore in Q3 FY04. However, they posted a loss of Rs 3.7 crore.

"We expect the Kaya Skin Clinic venture to contribute as a strong growth engine for Marico.

"It would also help us move up the value chain in the Personal Care business, through high value add solutions — both services and products in the skin care space," Marico said in a news release quoting Mr Harsh Mariwala, Chairman and Managing Director.

Marico's board has recommended a third interim dividend of 14 per cent.

The company is poised to touch Rs 1,000-crore turnover mark for the full year.

This will also include a milestone for the International Business of the Company, slated to cross Rs 100 crore.

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