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Updated January 30th, 2024 at 08:39 IST

Marico Q3 profit soars 16% to Rs 386 crore

The Mumbai-based company’s topline dropped nearly 2 per cent to Rs 2,422 crore in Q3FY24, from Rs 2,470 crore in Q3FY23.

Tanmay Tiwary
Marico Q3
Marico Q3 | Image:Marico
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Marico Q3 results: Consumer goods company Marico’s profit jumped 16 per cent to Rs 386 crore in the December quarter (Q3FY24), from Rs 333 crore in the same quarter a year ago (Q3FY23).

However, the Mumbai-based company’s topline dropped nearly 2 per cent to Rs 2,422 crore in Q3FY24, from Rs 2,470 crore in Q3FY23.

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Its operating profit, also known as EBITDA, surged 12.5 per cent to Rs 513 crore in the December quarter. Meanwhile, its operating margin (OPM) squeezed 270 basis points (bps) 21.2 per cent in December quarter, from Rs 18.5 per cent in the same quarter a year ago.

The company’s overall domestic volumes rose 2 per cent, Parachute rigid volumes grew 3 per cent while Saffola declined mid-single digits and VAHO sales surged 3 per cent.

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However, its gross margins expanded by 634 basis points annually to 51.3 per cent.

“Marico witnessed a revenue de-growth on account of subdued volumes (2 per cent in domestic business, 6 per cent CCG in IBD) and decline in realisation due to price cuts. However, margins expanded due to lower input cost prices and part of gains were used to ramp up A&P spends by 125 bps. Marico expects positive revenue growth in Q4 along with GM expansion approximately 450-500 bps YoY & highest ever operating margin expansion of approximately 250 bps in FY24.  We expect a gradual uptick in consumption trends led by improving macro-economic indicators, continued govt spending & conducive consumer pricing across categories due to low input costs. We have a ‘Hold’ rating on the stock,” said Amnish Aggarwal, Head of Research, Prabhudas Lilladher Pvt Ltd.

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The market capitalisation of Marico is Rs 66,834 crore, according to BSE.

The shares of Marico settled 1.64 per cent lower at Rs 516.55 ahead of its Q3 results. 

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Published January 29th, 2024 at 16:08 IST

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