Marico Q1 net jumps 17% to Rs 267 cr

EBITDA grows 18% to RS 374 cr

Fast moving consumer goods major Marico Ltd. posted Rs 267.2 crore net profit in the April-June 2016 quarter - up by 17.2 percent on year on year basis from Rs 228.5 crore. The firm's net sales inched up marginally by 0.1 percent to Rs 1,749.9 crore compared to Rs 1,748.2 crore.

Marico's total costs went down by 3.4 percent to Rs 1,401 crore from Rs 1,450.7 crore during the quarter mainly due to lower raw material costs. Its cost of materials consumed plunged by 16.4 percent during the three months period ended 30 June, partly offset by 22.2 percent higher expenses on the advertisement and promotional (A&P) front. Marico's A&P costs grew to Rs 209.1 crore from Rs 171 crore a year ago.

As a result, its earnings before interest, tax, depreciation and amortisation (EBITDA) grew 18 percent on y-o-y basis to Rs 374 crore. In the quarter, Marico had divested its stake in Beaute Cosmetique Societe Par Actions, a subsidiary of International Consumer Products Corporation, Vietnam which resulted in a one-time gain of INR 9.6 crores. Its plant at Guwahati, Assam had become operational in May which is expected to add to the company's manufacturing capacity in the value added hair oils category.

During the quarter, Marico posted eight percent volume growth, backed by 11 percent growth for its refined edible oil brand Saffola and nine percent growth in its value added hair oils portfolio (Parachute Advansed, Nihar Naturals and Hair & Care). Its flagship brand Parachute coconut oil (rigid packs) grew by seven percent.

Marico's stock went up by 0.10 percent to Rs 295.20 during the day. The 30-index Bombay Stock Exchange grew 1.31 percent to close at 28,078.35 points.