Marico turns volatile after reporting Q1 numbers

Marico fell 0.47% to Rs 440.10 at 15:17 IST on BSE after consolidated net profit rose 28% to Rs 238 crore on 10% growth in revenue from operations to Rs 1783 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced during market hours today, 5 August 2015.

Meanwhile, the S&P BSE Sensex was up 154.02 points or 0.55% at 28,225.95.

On BSE, so far 2.12 lakh shares were traded in the counter as against average daily volume of 66,976 shares in the past one quarter.

The stock was volatile. The stock lost as much as 1.51% at the day's low of Rs 435.50 so far during the day. The stock rose as much as 3.34% at the day's high of Rs 457 so far during the day. The stock had hit a 52-week low of Rs 254.25 on 4 August 2014. The stock had hit a record high of Rs 466.30 on 24 June 2015.

The stock had outperformed the market over the past one month till 4 August 2015, rising 1.56% compared with Sensex's 0.07% decline. The scrip had also outperformed the market in past one quarter, advancing 13.81% as against Sensex's 2.11% gain.

The large-cap company has equity capital of Rs 64.51 crore. Face value per share is Re 1.

Marico's top line growth during the quarter was driven by 6% volume growth in India leading to overall volume growth of 5%. The Domestic business recorded a value growth of 12% while the International business posted a growth of 4%.

Marico's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 22% to Rs 325 crore in Q1 June 2015 over Q1 June 2014.

With regard to future business outlook, Marico said that it will aim at a volume growth of 8-10% and a top line growth of about 15% in the medium term. In the current year, though, the growths may be lower at 5-8% in volume terms and 10-13% in value terms, Marico added. Operating margin is expected to be maintained in a band of 15-16%, Marico said. In the current year, however, given the benign raw material price scenario, the margins may expand to circa 17% levels, the company said.

Marico said it will continue to invest in increasing its direct rural reach and Go To Market transformation initiatives including driving saliency through e-commerce. The company will focus on building capabilities to set it up for growth in the long run, Marico said in a statement.

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

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