Marico net up 3% in Q2 as vol­umes grow

The Hindu Business Line - - NEWS -

FMCG ma­jor Marico re­ported net profit of ₹181 crore for the Septem­ber quar­ter, up 3 per cent year-on-year sup­ported by vol­umes ris­ing 8 per cent over the pe­riod. Rev­enue rose 6 per cent to ₹1,536 crore, while earn­ings be­fore in­ter­est and taxes rose only by 2 per cent to ₹259 crore.

The com­pany said in an ex­change fil­ing that “vol­ume growth was mainly at­trib­ut­able to com­pet­i­tive pric­ing, con­tin­ued in­vest­ments and pipe­line re­fill­ing in gen­eral trade”. The com­pany said that EBITDA mar­gin fall­ing 68 ba­sis points from the year-ago pe­riod to 16.9 per cent was be­cause co­pra prices rose 84 per cent over the same pe­riod, while the com­pany did not pass on the price in­crease to con­sumers in its Parachute oils port­fo­lio. Marico’s In­dia busi­ness achieved a turnover of ₹1,200 crore, a growth of 12 per cent over the same pe­riod last year. Its in­ter­na­tional busi­ness grew by one per cent in con­stant cur­rency terms (vol­ume de­cline of 3 per cent).

The male sham­poo and male de­odor­ants cat­e­gory slow­down in Viet­nam and macro-eco­nomic head­winds in the Mid­dle East and Africa re­gion con­tin­ued to put pres­sure on the over­all in­ter­na­tional busi­ness, the com­pany said.

The es­ti­mated cap­i­tal ex­pen­di­ture for FY-18 and FY-19 will be about ₹100-125 crore each year, the com­pany said. The board de­clared in­terim div­i­dend of ₹1.75 a share.

The com­pany’s scrip closed at ₹313.35, up 0.8 per cent, on the BSE on Mon­day.

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