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Marico Q4 Results: Volume growth of 3%; Gross margin expands over 400 basis points
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
In its quarterly business update, Marico had highlighted that the consolidated revenue grew in low single digits, moving back into positive territory of three quarters.
Marico Ltd. reported volume growth of 3% during the January-March period, in-line with the CNBC-TV18 estimate of 2% to 3% growth. The company met expectations on most other parameters as well.
The consumer goods company reported revenue of ₹2,278 crore, which is in-line with the CNBC-TV18 poll estimate of ₹2,275 crore. On a year-on-year basis, revenue had increased by 1.7%.
In its quarterly business update, Marico had highlighted that the consolidated revenue grew in low single digits, moving back into positive territory of three quarters.
“We expect consolidated revenue growth to trend upwards, with domestic revenue growth outpacing volume growth in the quarters ahead,” the company had highlighted.
Net profit for the quarter stood at ₹320 crore, marginally lower than the poll of ₹337 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation increased by 12.5% from last year to ₹442 crore, meeting expectations of ₹445 crore. EBITDA margin expanded by nearly 200 basis points to 19.4% from 17.5% last year.
Marico had highlighted that edible oil and crude oil derivative prices remain stable and hence it expects strong gross margin expansion on a year-on-year basis. Gross margin for the year expanded by over 400 basis points to 51.6% from 47.4% last year.
Gross margin is a portion of the company’s revenue left over after direct costs are accounted for.
Marico’s India business remained flat on a year-on-year basis, but its EBIT expanded by 12.3% to ₹339 crore.
Revenue for the international business increased by 7.4% from last year to ₹598 crore. Its EBIT also increased by 24.6%.
Shares of Marico ended 2.9% higher on Monday at ₹531.85. The stock is down 2% so far in 2024 and has remained flat in the last 12 months.
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