New Delhi: FMCG firm Marico Ltd on Monday reported a 2.48% increase in consolidated net profit at Rs185.04 crore for the second quarter ended 30 September, led by volume growth.
The company had reported a net profit of Rs180.55 crore in the July-September quarter a year ago, Marico said in a BSE filing. Consolidated net sales during the quarter under review stood at Rs1,536.29 crore, up 6.47% from Rs1,442.80 crore in the corresponding quarter of the last fiscal.
“The volume growth is mainly attributable to competitive pricing, continued investments and pipeline refilling in general trade,” the company said in an information update. Its total expenses were up 7.54% to Rs1,304.23 crore as against Rs1,212.75 crore. During the period, Marico’s domestic sales were up 11.55% to Rs1,200.04 crore as against Rs1,075.78 crore for the corresponding quarter of 2016-17.
“In the second quarter, India business recorded a smart recovery with a volume growth of 8% coupled with a healthy margin performance. The company continued to see satisfactory offtake growth with increases in market share in more than 90% of the categories that it operates in,” it said. However, revenue from international business in the said quarter was down 8.38% to Rs336.25 crore as against Rs367.02 crore in the year ago period.
“Marico’s international business grew by 1% in constant currency terms (volume decline of 3%). The male shampoo and male deodorants category slowdown in Vietnam and macro-economic headwinds in the MENA region continued to put pressure on the overall international business,” the company said.
Meanwhile, in a separate filing, Marico informed that its board declared a first interim equity dividend of 175% for the ongoing fiscal, which is Rs1.75 per equity share of Re1 each. Shares of Marico on Monday settled at Rs313.35 on the BSE, up 0.80% from the previous close.