Companies

Marico's Q2 net up 17 per cent to ₹309 crore

Our Bureau Mumbai | Updated on October 29, 2021

Revenue has risen 21.6 per cent to ₹2,419 crore.

Marico's net profit during the second quarter has increased by 17 per cent year on year, from ₹264 crore in the quarter ending on September 30, 2020, to ₹309 crore for the quarter ending on September 30, 2021.

The company’s revenue from operations rose by 21.6 per cent to ₹2,419 crore for Q2FY22 from ₹1,989 crore for Q2FY21.

According to the press note, the company has seen a domestic volume compound annual growth rate of 9 per cent and a 13 per cent constant currency growth in the international business. Like most FMCG companies, Marico also sees a moderation in rural demand, which was previously responsible for sustaining demand volumes during peak covid. However, despite demand moderation in the rural segment, growth in this segment still outpaces rural.

As discretionary consumption picks up, the premium category lights hope for sustained recovery for Marico. “Beardo and Just Herbs in line with expectations | Beardo targets 100 Cr run rate on exit basis” the Marico investor presentation stated.

Marico expects mid-single-digit domestic volume growth likely in the second half of the 2022 fiscal. Plants to maintain market share and gain momentum while looking at stable growth in the international business. Gross margins are expected to sequentially improve in Q3 and Q4, and cost rationalisation remains a focus.

Medium-term strategies for the company include premiumisation of the core portfolio, expansion of the foods portfolio, accelerated digital transformation, cost management, and revolutionising discretionary portfolios. Marico aims at an 8-10 per cent domestic growth in the medium term, sustained gains in market share and double-digit growth in international business.

Published on October 28, 2021

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