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Marico fourth quarter net profit up 14% at Rs 227 cr; sales rise 34.5%

This was helped by a double-digit volume growth in the domestic market.

Topics
Marico | FMCGs | Q4 Results

Press Trust of India  |  New Delhi 

FMCG, Marico, Parachute
Parachute is Marico's flagship brand

FMCG firm Ltd on Friday reported a 14.07 per cent increase in its consolidated net profit at Rs 227 crore for the March 2021 quarter, helped by a double-digit volume growth in the domestic market.

The company had posted a net profit of Rs 199 crore in the January-March quarter a year ago, said in a BSE filing.

Revenue from operations of the Mumbai-based firm was up 34.49 per cent at Rs 2,012 crore during the quarter under review as against Rs 1,496 crore in the corresponding period of the previous year.

"In Q4 FY21, revenue from operations grew by 34 per cent YoY to Rs 2,012 crore (USD 276 million) backed by robust volume growth of 25 per cent in the domestic business and constant currency growth of 23 per cent in the international business," said in a post earning statement.

Its total expenses were at Rs 1,739 crore during the March 2021 quarter, up 37.47 per cent as against Rs 1,265 crore of Q4/FY2019-20.

During the period, domestic sales were up 37.35per cent to Rs 1,574 crore as against Rs 1,146 crore from a year ago.

However, "operating margin was lower YoY at 17.6 per cent in Q4 FY21 vs 22.8 per cent in Q4 FY20, owing to the input cost push, which was partly offset by pricing interventions in key portfolios and aggressive cost control initiatives," it said

Over the domestic sales, Marico said rural markets continued to lead the way in traditional trade, growing at 1.8x of urban sales.

"eCom and CSD also fared well, while Modern Trade dipped due to pantry loading in the base quarter, it said.

Revenue from the international business was up 25.14 per cent at Rs 438 crore as against Rs 350 crore a year earlier.

"In the International business, Bangladesh clocked 20 per cent constant currency growth. South-East Asia also reverted to positive territory with 13 per cent constant currency growth. MENA and South Africa also gained on a low base, it said.

For the fiscal year 2020-21, Marico's net profit was up 14.96 per cent at Rs 1,199 crore. It was Rs 1,043 crore in the previous year.

Its revenue from operations for the entire fiscal was up 10.02 per cent at Rs 8,048 crore. It was Rs 7,315 crore in FY 2019-20.

Over the outlook, Marico said it holds its medium-term aspiration of delivering 8-10 per cent domestic volume growth and 13-15 per cent revenue growth.

"While the key portfolios of both the India and International businesses have rebounded strongly as the first COVID wave subsided, the near term impact of the ongoing wave is difficult to foresee at this time, particularly on the domestic business. We expect a clearer picture to emerge in May, it said.

As the situation evolves, Marico will continue to judiciously invest behind brand building to support market growth initiatives in core categories and expansion into relevant adjacent categories.

"The Company would be comfortable maintaining its threshold operating margin of 19 per cent plus over the medium term. However, operating margins will be lower in the immediate near term, given the unprecedented input cost pressure and COVID-related disruption, especially in Q1," it said.

Shares of Marico Ltd on Friday closed at Rs 410.35 apiece, up 0.10 per cent from the previous close on the BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, April 30 2021. 16:37 IST
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