Marico’s consolidated revenue during October-December improved in low single digits on a year-on-year basis. While urban and premium categories maintained their steady pace of growth during the quarter, recovery in rural demand was not as discernible as due to inflation, the company said in a regulatory filing
India business marked a slight improvement over the preceding quarter to post a mid-single-digit volume growth. Parachute coconut oil posted low single-digit volume growth while Saffola Oils posting low teen volume growth.
Value added hair oils had a subdued quarter, which was mainly a reflection of tepid sentiment in rural and mass personal care categories. Premium personal care, on the other hand, witnessed double-digit growth in line with sectoral trends.
During the quarter, international business posted high single-digit constant currency growth. The company witnessed implications of currency depreciation and high inflation in key markets during the quarter. Because of some semblance of stability in key input prices and consumer pricing across key franchises, gross and operating margins are expected to improve both on a sequential and year-on year basis during Q3, the company said. In view of the lower revenue growth, modest growth in operating profit is expected during the quarter.
During September quarter, Marico had posted 3% year-on-year drop in net profits at Rs 307 crores for the quarter ended September because of impact on demand due to inflationary pressures and decline in operating margin.
In Q2, company’s domestic volumes improved by 3% and it remains to be seen how much did the demand improve in Q3. Marico is yet to disclose the date for announcing Q3 quarterly results.
Going forward, Marico expects ease of commodity inflation, higher crop realizations, ongoing government interventions and likely stimulus from the upcoming union budget, to augur well for the sector in the forthcoming calendar year.
On Wednesday, Marico’s shares closed at `506.25 on the BSE, down 0.87% from previous day’s close.