Marico Q2 consolidated net up over 2% to Rs 185 crore led by volume growth

FMCG firm Marico on Monday reported a 2.48 per cent increase in consolidated net profit at Rs 185.04 crore for the second quarter ended September 30, led by volume growth.

The company had reported a net profit of Rs 180.55 crore in the July-September quarter a year-ago, Marico said in a BSE filing.

Consolidated net sales during the quarter under review stood at Rs 1,536.29 crore, up 6.47 per cent from Rs 1,442.80 crore in the corresponding quarter of last fiscal.

"The volume growth is mainly attributable to competitive pricing, continued investments and pipeline refilling in general trade," the company said in an information update.

Its total expenses were up 7.54 per cent to Rs 1,304.23 crore as against Rs 1,212.75 crore.

During the period, Marico's domestic sales were up 11.55 per cent to Rs 1,200.04 crore as against Rs 1,075.78 crore for the corresponding quarter of 2016-17.

"In the second quarter, India business recorded a smart recovery with a volume growth of 8 per cent coupled with a healthy margin performance. The company continued to see satisfactory offtake growth with increases in market share in more than 90 per cent of the categories that it operates in," it said.

However, revenue from international business in the said quarter was down 8.38 per cent to Rs 336.25 crore as against Rs 367.02 crore in the year-ago period.

"Marico's International business grew by one per cent in constant currency terms (volume decline of 3 per cent). The male shampoo and male deodorants category slowdown in Vietnam and macro-economic headwinds in the MENA region continued to put pressure on the overall international business," the company said.

Meanwhile, in a separate filing Marico informed that its board declared a first interim equity dividend of 175 per cent for the ongoing fiscal, which is Rs 1.75 per equity share of Re 1 each.

Shares of Marico Ltd today settled at Rs 313.35 on BSE, up 0.80 per cent from previous close.