Marico resumes normal manufacturing ops at Bangladesh plants; stock up 3%

Marico Bangladesh update news: Marico said the manufacturing operations in the country resumed at normal scale on Monday

Marico share price, Bangladesh news: Marico share price today rose 3.1 per cent to Rs 665.55 per share on the BSE on Tuesday after the company shared an update regarding its operations in Bangladesh.

At 12:55 PM, Marico share price was quoting at Rs 666, up 1.88 per cent, on the BSE. By comparison, the benchmark BSE Sensex was down 330 points, or 0.76 per cent, at 79,319 level.

In an exchange filing on Tuesday, Marico said the manufacturing operations in the country resumed at normal scale yesterday (Monday).

"Operating conditions in the market have been gradually improving and a large majority of our retail sales force and distributors have been functioning since last week," it added. READ FILING HERE

 

Notably, Marico shares had declined a day after Sheikh Hasina stepped down as Bangladesh's prime minister amid protests. The country is a major source of revenue under Marico's international business. In FY24, it accounted for nearly 44 per cent of international revenue.

Marico has around 77,000 outlets in Bangladesh with 'International' revenues making up about 26 per cent of Marico's total revenues.

"We continue to prioritise the safety of our employees, factory workers, distributors and other stakeholders of our business. We firmly believe that the medium-term prospects of Marico's business in Bangladesh remain intact," Marico added.

Meanwhile, in the April-June quarter of FY25, Marico reported better-than-expected net profit of Rs 464 crore as against a profit of Rs 427 crore in the year ago period.

Its earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improved 50 bps to 23.7 per cent as against 23.2 per cent in Q1FY24. Revenue also climbed 7 per cent year-on-year to Rs 2,643 crore, with underlying volume growth of 4 per cent in the domestic business and constant currency growth of 10 per cent in the international business.

"We expect Marico to see Revenue/Ebitda/net profit CAGR of 9 per cent/11 per cent/11 per cent over FY24-27 given that domestic business is firing from on all cylinders; there is significant improvement in profitability of fast-growing foods and digital-first businesses (20 per cent of domestic sales); it is sustaining double-digit constant currency revenue growth momentum in International business as worst related to currency headwinds is behind us," said analysts at HDFC Securities with a 'Buy' rating and a target price of Rs 725.