Consumer goods major Marico on Monday said that it expected to deliver a strong double-digit volume growth in the quarter ended March 31, 2021 (Q4), though input cost pressures would hurt operating margins.
The disclosures were made as part of its quarterly update for the period, where the company said that it saw healthy momentum across key categories. Marico expects low double-digit bottom line growth in Q4.
“Revenue growth in Q4 was even higher than volume growth because of pricing interventions in key portfolios to partially alleviate the significant input cost-push during the period,” it said.
While the input cost environment had turned challenging in the short term, Marico said that it expected these trends would correct from Q2 of FY22,” the company said. In its update for the December quarter, Marico had said that the FMCG industry was seeing improved demand trends as the economy recovered gradually. However, with the second wave of the pandemic gathering pace, analysts said that firms would have to be watchful in the future.
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