Marico shares jump 6% as Q4 earnings meet estimates, margin expands

Marico's earnings before interest, tax, depreciation, and amortisation (Ebitda) margin increased by 58 basis points YoY to 18.9 per cent in Q4FY20

Shares of Marico Ltd rose 6 per cent to Rs 301.65 on the BSE on Tuesday as the company's margin expanded in the March quarter and earnings largely met estimates despite 50 per cent decline on a year-on-year (YoY) basis.

The FMCG firm's earnings before interest, tax, depreciation, and amortisation (Ebitda) margin increased by 58 basis points YoY to 18.9 per cent in Q4FY20 owing to stable input costs and lower advertising spends. This also contained the impact on the top line, with Marico’s pre-tax profit declining 3 per cent YoY to Rs 262 crore versus analysts’ estimate of Rs