Marico Q3 results: PAT rises 4% to Rs 399 crore, revenue jumps 15%

Indian consumer goods maker Marico reported a smaller-than-expected quarterly profit on Friday, as higher raw material costs and marketing spends overshadowed price increases-led growth.

Rising prices of raw materials including copra and vegetable oil weighed on the Parachute coconut oil maker's profits, while the company also faces intense competition and continues to spend heavily on marketing and advertising.

Marico's expenses rose 17.7 per cent to Rs 2,318 crore ($267.54 million) during the third quarter ended December 31.

Consolidated net profit stood at Rs 399 crore ($46.05 million), compared to Rs 383 crore a year earlier. Analysts, on average, were expecting a profit of Rs 402 crore, according to data compiled by LSEG.

Revenue, however, came in at Rs 2,794 crore, up 15.4 per cent from a year earlier, supported by improving demand in rural areas and product price increases.

Marico said it would raise prices of its products further to make up for an expected "firmness" in commodity prices, noting copra prices, up 38 per cent this financial year, were ahead of its forecasts.

It also said its revenue would increase in the double-digit percentage range in the medium term by increasing its market share across its portfolio of brands.

Meanwhile, Dove soap maker and industry bellwether Hindustan Unilever reported below-expectation results last week and forecast margin pressures ahead.