Marico posts 16% growth in second quarter profit at Rs 316 crore

Homegrown FMCG major Marico Ltd on Thursday reported a 16 per cent growth in consolidated net profit at Rs 316 crore in the second quarter ended September driven by volume growth in the domestic market.

The company had posted a consolidated net profit of Rs 273 crore in the corresponding period last fiscal, Marico said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 2,419 crore as against Rs 1,989 crore in the year-ago period, the company added.

"We have delivered a fairly robust topline and bottom line performance in the domestic and overseas businesses despite an evolving operating environment and considerable input cost pressures," Marico Ltd Managing Director and CEO Saugata Gupta said.

The company said its India business delivered a turnover of Rs 1,870 crore, up 24 per cent from the second quarter last fiscal.

"As lockdown restrictions were eased, macro indicators were supported by rising mobility, which crossed pre-pandemic levels for the first time in September. With more than 90 per cent of our portfolio comprising daily-use items, we witnessed healthy demand trends across these categories, while discretionary and out-of-home consumption also picked up to some extent," it added.

Traditional trade stayed firm on a high base. Rural growth exceeded urban during the quarter and on a two-year CAGR basis, but has slowed down sequentially, it added.

The international business delivered a turnover of Rs 549 crore, up 14 per cent from the corresponding quarter last fiscal with constant currency growth of 13 per cent, Marico said adding it witnessed a steady quarter in all markets, except Vietnam, which was contending with a severe COVID-19 surge during the quarter.

The company said its foods franchise is on course to reach the Rs 500 crore mark in FY22.

"We aim to accelerate our digital transformation journey by building a portfolio of at least three digital brands, either organically or inorganically, with a combined turnover of Rs 450-Rs 500 crore by FY24," it added.

On the outlook, Marico said it "holds its medium term aspiration of delivering 13-15 per cent revenue growth on the back of 8-10 per cent domestic volume growth and double-digit constant currency growth in the international business."

The company will aim to maintain operating margin above the threshold of 19 per cent over the medium term, it added.