Marico Ind dips post Q2 earnings

Q2 consolidated net profit grew lower than expected by 10% at Rs 86 crore, due to higher finance cost and lower other income.

Marico Industries has dipped almost 6% at Rs 202 after reporting lower than expected 10% year-on-year (yoy) growth in its consolidated net profit at Rs 86 for the second quarter ended September 2012, due to higher finance cost and lower other income. Net sales however, grew 19.5% at Rs 1,159 crore on y-o-y basis.

Analyst on an average expected profit of Rs 111 crore from personal products maker. The company had reported net profit of Rs 124 crore in June 2012 quarter.

"The company’s other income has declined by 60% at Rs 4 crore, while finance cost surged 40% at Rs 15 crore in September quarter over the previous year," Marico said in a statement.

Meanwhile, the board has approved the declaration of first interim equity dividend of 50% or Re 0.50 per equity share of Re 1/- each for the financial year 2012-13.

The stock opened at Rs 214 and hit a high of Rs 217 on the BSE. A  combined 1.45 million shares have changed hands on the counter so far on both the exchanges.