Marico slips 3.7% in three sessions

Marico fell 1.21% to Rs 379.50 on BSE, extending losses since Monday, 30 September 2019.

Shares of Marico lost 3.7% in three trading sessions to its current market price of Rs 379.50, from a recent closing high of Rs 394.10 on 30 September 2019.

Marico announced during market hours on Tuesday, 1 October 2019, said that the demand and consumer sentiments weakened progressively during the quarter ended on 30 September 2019, which manifested in slowing category growths. Further, liquidity challenges led to some correction in trade inventories and exerted pressure on channel partners investments and returns. In the traditional channel, both rural and urban faced distress during the quarter. The alternate channels (modern trade and E-commerce) however, stayed on course.

Despite the uninspiring narrative around the economy prevailing, the company hopes for some recovery in overall sentiment in the second half on the back of good monsoons and government-led stimulus. In the India business, soft consumption trends and tight liquidity conditions led to a much subdued quarter for each of the core and some of the new categories. On the other hand, the International business maintained its relatively stable run with Bangladesh leading the way, while Vietnam witnessed some moderation in the home and personal care segment. Benign input costs in the India and Bangladesh business as well as continued cost management measures should lead to improved profitability during the quarter, despite a rise in brand building spends and subdued topline. The company said it will continue to drive sustained profitable volume-led growth over the medium term, through its focus on strengthening the franchise in the core categories and driving the new engines of growth towards gaining critical mass.

Marico's board will consider Q2 September 2019 results on Friday, 25 October 2019.

Meanwhile, the S&P BSE Sensex was up 225 points or 0.59% to 38,332.07.

On the BSE, 12,381 shares were traded in the counter so far compared with average daily volumes of 1.62 lakh shares in the past two weeks. The stock hit an intraday high of Rs 384.65 and an intraday low of Rs 379.50 so far during the day.

The stock hit a 52-week high of Rs 403.70 on 25 September 2019. The stock hit a 52-week low of Rs 286.25 on 11 October 2018.

Marico's consolidated net profit soared 26.3% to Rs 322.15 crore on a 6.9% increase in net sales to Rs 2,166 crore in Q1 June 2019 compared with Q1 June 2018.

Marico is a consumer products company operating in the beauty and wellness space. The company's principal products include edible oils and value added hair oils.

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