Recovery drives topline performance for Marico, stock up 11% from Aug lows

Margins to come under pressure as input costs remain higher

The stock of consumer major Marico rose about 1.2 per cent in a weak market after its quarterly update highlighted pick-up in demand and improving consumer sentiment across categories. While the ongoing vaccination and lower Covid infections have led to healthy overall demand, improved mobility has rubbed off on growth in the discretionary and out-of-home categories.

For its domestic business — which accounts for three-fourths of its revenues — revenue growth came in at low twenties, in line with analyst estimates. After an 11 per cent decline in Q1FY21, Marico’s revenue growth has been trending up over the past three quarters