Marico net up 24% on other income, lower finance costs

Growth in domestic sales volume stood at 7%

Aided by higher other income and lower finance costs, consumer products maker Marico reported 24 per cent growth in net profit for the quarter ended March this year at Rs 110.03 crore. Net sales increased 14.31 per cent to Rs 1,222.98 crore.

Growth in sales volume for the company’s domestic business, which accounts for 75 per cent of its overall turnover, stood at seven per cent. Key brands Parachute and Saffola saw volume growth of nine per cent and three per cent, respectively, while the value-added hair oils segment recorded 10 per cent volume growth.

Overall, the company’s domestic business grew 17 per cent during the quarter, while international business expanded six per cent, owing to challenges in markets such as Bangladesh, which contributes about half to the city-based firm’s global revenue.

During the March quarter, Marico’s total expenditure increased 14.4 per cent to Rs 1,075 crore. But this was offset by a 43 per cent increase in other income at Rs 18.76 crore and the fact that finance costs fell 17 per cent to Rs 5.61 crore.

The company’s tax outgo, however, increased 12 per cent to Rs 52.77 crore.

For 2014-15, Marico’s net profit increased 18.44 per cent to Rs 573.45 crore, against Rs 485.38 crore in 2013-14. Net sales for FY15 increased 22.32 per cent to Rs 5,720.28. While the domestic business expanded 26 per cent during the year, international business grew 10 per cent. After the company announced its earnings on Thursday, the Marico stock fell to Rs 399, before closing at Rs 401.35.