In the quarter under review, the company is seen reporting a 17.95 percent YoY rise in net sales to Rs 1,983.4 crore
Moneycontrol News
FMCG major Marico is likely to report a 10.85 percent year-on-year (YoY) increase in its April-June consolidated net profit at Rs 261.5 crore driven by the statistical effect of a low base, according to a Reuters poll of analysts.
In the first quarter of FY18, the company had posted a net profit of Rs 235.9 crore.
The Mumbai-based company had witnessed a 12 percent drop in its bottomline in the year-ago period, due to disruption in trade channels ahead of the implementation of the goods and services tax.
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In the quarter under review, the company is seen reporting a 17.95 percent YoY rise in net sales to Rs 1,983.4 crore.
The fast-moving consumer goods giant will announce its first quarter results for FY19 on Aug 2.
The sales growth is expected to be broad-based, with all three major categories--Saffola, Parachute and value-added hair oil--posting double-digit growth in volumes.
"We expect Parachute, Saffola, Value-Added Hair Oil to post 12%, 10%, 20 percent, volume growth, (respectively)," said Emkay Global in its brokerage report.
Analysts expect inflation in copra prices to weigh on the operating margin of the company in the quarter. Operating margin is seen in the range of 17.3-20.2 percent as against 19.3 percent in the year-ago period.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) is likely to increase 11.28 percent to Rs 360.9 crore.
"Earnings before interest, tax, depreciation and amortisation margin decline likely to be lower on account of operating leverage," Kotak Institutional Equities said in its report.
Brokerages expect the company's volume growth to be in the range of 11-14 percent. HUL had witnessed flat volume growth in the year-ago period because of the disruption in trade channels before the implementation of Goods and Services Tax (GST).
The management's commentary on pricing strategy for the next few quarters in the wake of rising crude oil and copra prices will be keenly watched by analysts.
Analysts will also monitor the performance of the Saffola and youth products portfolio. The update on sales through the canteen stores department and international sales are the key points to watch, according to analysts.