Marico gains after decent Q2 results

Marico rose 1.75% to Rs 307.40 at 14:12 IST on BSE after consolidated net profit rose 12% to Rs 118 crore on 28% growth in revenue from operations to Rs 1431 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced during market hours today, 7 November 2014.

Meanwhile, the S&P BSE Sensex was down 64.79 points or 0.23% at 27,851.09.

On BSE, so far 73,000 shares were traded in the counter as against average daily volume of 39,775 shares in the past one quarter.

The stock hit a high of Rs 311.35 and a low of Rs 301.30 so far during the day. The stock had hit a record high of Rs 321 on 31 October 2014. The stock had hit a 52-week low of Rs 200 on 8 November 2013.

Marico's EBITDA rose 16% to Rs 195 crore in Q2 September 2014 over Q2 September 2013.

Marico International EBITDA margin stood at 16.2% in Q2 September 2014 compared with 16.7% in Q2 September 2013. Marico India EBITDA margin stood at 15.1% in Q2 September 2014 as against 17.6% in Q2 September 2013, before corporate allocations.

Marico registered a healthy volume growth of 8% in India and 5% in International business during the quarter. The company's market share increased in more than 80% of the portfolio.

With regard to the company's short/medium term outlook, Marico said it will focus on deriving synergies from the unification of Domestic and International FMCG businesses. This includes acceleration of cross pollination & portfolio harmonization, supply chain synergies and process harmonization leading to cost arbitrage. Significant portion of the gains from the value transformation exercise in India and overseas will be ploughed back to fund growth and innovation, it said. Market growth initiatives in core categories and expansion into adjacent categories will be supported by investments in ASP in the region of 11-12% of sales, Marico said. The company will continue to invest in increasing its direct rural reach and Go To Market transformation initiatives, it added. These efforts are expected to deliver a top line growth in the region of 15% to 20% in the medium term with an operating margin in the band of 14% to 15%, Marico said. The company will focus on building capabilities to set it up for growth in the long run, it added.

Marico is a leading Indian group in consumer products & services in the global beauty and wellness space.

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