Marico net up 3% in Q2 as volumes grow
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.