Marico's consolidated revenue grew in low single digits in Jan-Mar quarter

India business volume growth improved slightly over the preceding quarter, staying in mid-single digits

The maker of Parachute coconut oil has seen its consolidated revenue grow in low single digits on a year-on-year basis in the January-March quarter, the company said in an update ahead of its results in a stock exchange filing.

Its India business volume growth improved slightly compared to the preceding quarter and stayed in the mid-single digit zone.

“During the quarter, the sector continued to witness gradual recovery with year-on-year volume trends improving in each quarter. While urban and premium categories were stable, easing of broader commodity inflation bodes well for overall consumption trends, especially in rural markets,” Marico said in its update.

It added, "While a more visible and sustained recovery in FMCG demand is anticipated in the coming quarters, based on a variety of improving macro indicators, a healthy monsoon season will be critical for it to materialise.”

Parachute oil posted a high-single digit volume growth due to stable consumer pricing, while copra prices remained steady through the quarter. Value-added hair oils reported double-digit volume growth.

“Category growth evidently consolidated on a low base amid the prevailing muted sentiment in rural and mass personal care categories,” the company said.

Saffola oils remained stable sequentially, but dipped on a year-on-year basis while premium personal care also grew in double digits and its digital first portfolio delivered a healthy run rate.

In its international business, Marico posted mid-teen constant current growth as each of its markets were resilient despite a challenging global macro environment and currency headwinds in certain markets.

“Among key inputs, copra prices remained steady in a favourable zone and edible oils resumed a downtrend, while crude derivatives remained firm. As a result of a moderating RM (raw material) basket and improving portfolio mix, gross margin is expected to expand and drive reasonable growth in operating profit on a year-on year basis,” Marico said in its update.

It aims to deliver sustainable and profitable volume-led growth over the medium term.