New Delhi: Homegrown FMGC firm Marico Ltd on Monday reported an 8.23 per cent increase in consolidated net profit to Rs 513 crore in the June quarter on the back of volume growth in India and robust performance in international markets.
The company posted a consolidated net profit of Rs 474 crore in the year-ago period, Marico Ltd said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at Rs 3,259 crore as against Rs 2,643 crore a year earlier, it added.
Total expenses were higher at Rs 2,659 crore as compared to Rs 2,075 crore in the same period last fiscal year, the company said.
In a statement, Marico said its consolidated and domestic revenue growth, as well as underlying volume growth in the India business, stood at multi-quarter highs.
"The new fiscal has begun on a promising note for both our India and international businesses, with growth trends moving in a positive direction. The improving trajectory of our core portfolios, coupled with accelerated growth in foods and digital-first portfolio, have driven underlying volume growth in the India business closer to double digits," Marico Ltd MD & CEO Saugata Gupta said.
The company, which sells a range of brands, including Parachute and Saffola, said its India business continued to post sequential improvement in underlying volume growth, driven by positive trends in the core franchises and accelerated scale up of new businesses.
"The India business revenues stood at Rs 2,495 crore, up 27 per cent year-on-year, further aided by price hikes in core portfolios in response to sharp inflation in input costs," it added.
The international business maintained its robust double-digit constant currency growth momentum. The business has remained resilient amid high input costs and currency headwinds in select markets, it added.
Gupta said, "The new businesses continue to scale up ahead of our aspirations, reaffirming their differentiated long-term potential. The international business delivered a stellar quarter, and we remain confident of sustaining this performance in the quarters ahead." Despite sharp inflationary headwinds in key commodities in the near term, he said, "We expect to maintain strong volume and revenue momentum, along with a resilient earnings performance, over the course of the full year."
On the outlook, Marico said, "The sector has witnessed stable to improving demand trends over the last couple of years. Looking ahead, we anticipate a gradual uptick in overall demand patterns in the quarters ahead, aided by a combination of easing inflation levels, favourable monsoon and continued policy support." The company expects a steady growth trajectory in its core categories, despite input cost headwinds in the near term, it added.
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