Marico cracks 5% after company flags slowdown in Q2 earnings

The company in its pre-quarterly update reported a slight decline in consolidated revenue for the July-September quarter compared to the previous year.

Shares of Marico cracked nearly 5 per cent to a low of Rs 544 in intra-day deals on Thursday after the company said its consoldiatd revenue in the September quarter would be lower due to price correction, forex impact.

At 11:15 AM, the stock was quoted over 4 per cent lower at Rs 547, with trades of around 41,000 shares so far on the BSE. Meanwhile, the S&P BSE Sensex had rallied 0.8 per cent to 65,738.

Marico in its pre-quarterly update, reported a slight decline in consolidated revenue for the July-September quarter compared to the previous year, attributing it to price corrections in its core domestic range. 

Additionally, the company said, currency depreciation in certain overseas markets negatively impacted the reported INR growth of the international business.

The firm experienced low single-digit year-on-year growth in domestic volumes for its known products like Parachute coconut oil and Saffola Edible Oils.

The company's international businesss logged a double-digit constant currency growth. The company anticipates a gross margin expansion for the quarter since primary input costs, including copra and edible oil prices, remained favourable. However, crude derivatives showcased a rising trend.

For H2FY24, Marico anticipates an upward trend in key performance indicators. This will be supported by a steady rise in volume and revenue in the domestic sector and strong momentum in international operations, while full-year margin projections remain unchanged.

The company is scheduled to announce its Q2 earnings on October 30, 2023.

Earlier in Q1FY24, the company had posted a 20.7 per cent decline in net profit to Rs 30.70 crore when compared with Rs 38.70 crore in Q1FY23. Total income was down 10.9 per cent year-on-year at Rs 187.80 crore from Rs 210.80 crore.