The FMCG major's consolidated net profit rose 23.17% to Rs 388 crore on 11.13% decline in revenue to Rs 1,925 crore in Q1 June 2020 over Q1 June 2019.
The company reported an exceptional gain of Rs 64 crore in Q1 June 2020 as against an exceptional loss of Rs 19 crore in Q1 June 2019. Profit before tax (PBT) gained 19.38% to Rs 505 crore in Q1 June 2020 as against Rs 423 crore in Q1 June 2019. Total tax expense for the quarter rose 8.33% at Rs 117 crore as against Rs 108 crore paid in Q1 June 2019. The result was announced during market hours today, 27 July 2020.
EBITDA was up 1% to Rs 467 crore YoY, led by 300 bps expansion in operating margins which was attributable to softer input costs, rationalization of A&P spends in discretionary portfolios and very aggressive cost control.
India volume growth declined 14% during the quarter on a year-on-year basis. The domestic business delivered a turnover of Rs 1,480 crore, down 15% on a year-on-year basis, impacted by the disruption in supply chain due to the continuing lockdown during the quarter to contain the outbreak of COVID-19.
While the international business de-grew by 4% in constant currency terms, Bangladesh continued to hold the fort by delivering a commendable 10% constant currency growth, while other geographies recorded double-digit drops.
Market price of copra was up 7% in Q1FY21, but down 7% sequentially mainly due to lower demand. For rest of the year, the company expects mildly bearish trends in copra prices.
In its outlook, Marico said it holds its medium-term aspiration of delivering 8-10% volume growth and 13-15% revenue growth. The company would be comfortable maintaining operating margin at 19% plus over the medium term. However, the company expects operating margins to be circa 20% for the rest of the year.
Shares of Marico slipped 1.89% to Rs 350.45 on BSE. Marico is a leading Indian group in consumer products in the global beauty and wellness space.
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