Companies

Marico Q3 net profit rises 13 per cent to ₹312 cr

Our Bureau. New Delhi | Updated on January 27, 2021

Marico Limited logo   -  Twitter/Marico Limited

FMCG major Marico Ltd on Wednesday posted a consolidated net profit of ₹312 crore during the third quarter ended December 31, a 14.28 per cent hike compared to the preceding quarter of the year. It had posted a consolidated net profit of Rs 273 crore in the second quarter of the financial year.

The revenue from operations during the quarter under review stood at ₹2,122 crore, a 6.6 per cent increase compared to ₹1,989 crore it had posted in the preceding quarter.

On a year-on-year basis, the consolidated net profit increased 13.04 per cent from Q3FY20’s ₹276 crore. The revenue from operations increased 16.33 per cent, compared to the year ago quarter’s ₹1,824 crore.

Marico posted a domestic volume growth of 15 per cent and a constant currency growth of eight per cent in the international business. “Amidst steadily improving consumer confidence and the receding impact of the pandemic, the India business witnessed robust demand trends across more than 95% of its portfolio,” Marico said in a statement.

During the quarter, as key raw materials saw inflationary trends, the company increased effective consumer pricing in select portfolios, while continuing to absorb the cost hit to a certain extent, it said.

“The company had a stellar quarter with a very healthy growth in both the India and International businesses. With the core franchises exhibiting strength and new bets in foods also trending well, we expect the domestic business to deliver much ahead of medium term aspirations over the next few quarters. The international business is also poised to maintain steady growth over the next few quarters,” said Saugata Gupta, MD & CEO of the company.

Over the medium term, the company aims to grow the core and build sizeable new franchises through premiumisation, foods and digital brands, Gupta added.

General trade led the growth with rural growth outpacing urban markets, said Marico.

Among the alternate channels, e-commerce delivered augmented growth, while modern trade fared better sequentially, delivering flattish growth year-on-year. CSD witnessed a modest decline year-on-year, though recovering sequentially.

“As consumption patterns normalize, the company will strive to sustain the current momentum and clock a double-digit volume growth in the India business in the coming few quarters, provided there is no second surge of COVID-19 cases and economic recovery continues. Over the medium term, the company shall endeavor to deliver an 8-10% volume growth, growing the core franchises and scaling up the foods business. With focus on gaining and defending market share, the company expects to maintain threshold operating margin of 19% plus over the medium term,” said Marico.

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Published on January 27, 2021
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