Parachute oil maker Marico’s net profit rises 20% in Q4 to ₹302 crore

• Marico’s revenue rose 4% on year to ₹2,240 crore for the March quarter.
• The FMCG player reported a 5% volume growth in the India business. Operating margins expanded by 153 basis points to 17.5%.
• Further, Marico said it expects revenue in the domestic business to grow going ahead aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building.

Parachute and Saffola oil maker Marico on Friday reported a 20% year-on-year net profit growth at ₹302 crore for the March quarter while revenue rose 4% to ₹2,240 crore. Profit for the quarter includes a one-time gain of ₹28 crore on sale of land in one of the overseas locations.

The fast-moving consumer goods (FMCG) company reported a 5% volume growth in its India business for the quarter. Operating margins expanded by 153 basis points to 17.5%.

“Urban consumption has remained steady in the past few quarters; however, signs of visible buoyancy are awaited. The rural sector has most likely bottomed-out as the declining trend reversed in this quarter,” said the company in a statement.

Besides, it said that the domestic sales lagged volume growth due to price cuts effected in Parachute Coconut Oil and Saffola Edible Oils during the year in response to falling input prices.

Further, Marico said it expects revenue in the domestic business to grow going ahead aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building.

“We expect a gradual uptick in revenue growth as pricing interventions come into the base in the first half of FY24,” it said.

The company’s international business delivered constant currency revenue growth of 16% for the quarter amid global macroeconomic uncertainty and currency devaluation headwinds in some of the geographies. “Each of the regions posted a strong performance reflecting the underlying strength of the businesses,” said Marico.

Bangladesh clocked 9% constant currency growth, Vietnam grew by 16%, MENA (Middle East and North Africa) grew by 37% and South Africa grew by 21%, it said.
Source: Company statement

From a portfolio perspective, Parachute Rigids posted a 9% volume growth for the quarter, value-added hair oils registered a 13% growth while the foods segment rose 18% to end the year close to the ₹600-crore revenue mark.

The Saffola franchise, comprising refined edible oils and foods, declined 9% in value terms, given the low-teen revenue decline in edible oils, it said.

Ahead of the earnings, shares of the company ended 0.53% lower at ₹494 on Friday.


SEE ALSO: The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount
HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak