Marico's earnings outlook improving as copra price drops by as much as 35%

Profitability and volumes of key Parachute brand of oil to get a major boost, say analysts

At a time when inflationary pressure weighs on the earnings of most fast-moving consumer goods (FMCG) companies, Marico stands out.

Marico’s products and services are in the area of grooming and health care. 

The price of copra, its key raw material, is down by around 35 per cent from January, helping the profitability and volumes of the company’s key hair oils portfolio — Parachute Rigids (coconut oil packs in blue bottles).

Copra prices had surged from around Rs 55 a kg in July 2016 to over Rs 140 a kg in early 2018 but are now down to about Rs 90 a kg,