EconomyCompanies
Marico's quarterly profit rises 31% to ₹550 crore on 10% India volume growth
The maker of Parachute and Saffola said revenue rose 13% to ₹3,897 crore in the September quarter, with its foods and international businesses growing fastest.
Key points
- Marico's September-quarter profit rose 31% to ₹550 crore.
- Its India business posted 10% underlying volume growth.
- The foods portfolio grew 45%, to an annual run rate above ₹1,500 crore.
Marico, the maker of Parachute coconut oil and Saffola edible oils, on Monday reported a 31% rise in September-quarter profit to ₹550 crore, as volumes in its home market grew at a double-digit pace.
Revenue from operations rose 13% from a year earlier to ₹3,897 crore, against ₹3,450 crore. The company said some advertising and promotion spending is now counted as a reduction in revenue, a change that does not affect profit.
India volumes pick up
The India business brought in ₹2,916 crore, up 10%, on 10% underlying volume growth. Gross margins in India widened by about 600 basis points, and the company said more than 95% of its India business gained or held market share.
Parachute rigid packs grew volumes 13% and hold a 60% share of their market. Value-added hair oils grew 21% in value, while Saffola edible oils added 6% in revenue.
The newer businesses grew fastest. The foods portfolio grew 45% and now runs at more than ₹1,500 crore a year. Premium personal care is above ₹500 crore a year, and the digital-first brands at about ₹1,150 crore.
Margins widen
Operating profit (EBITDA) rose 27% to ₹709 crore, and the EBITDA margin rose 200 basis points to 18.2%. The international business grew 13% in constant currency and 23% in rupee terms, led by Vietnam at 22%, with the Middle East and North Africa and South Africa each at 15% and Bangladesh at 5%.
The board also named Rajan Bharti Mittal as lead independent director from Monday.