Revenue from operations rose 3.65% to Rs 2240 crore in Q4 from Rs 2161 crore in the year ago period. Revenue in the December quarter stood at Rs 2470 crore Marico Ltd on Friday reported a 19 per cent increase in net profit for the quarter ended March 2023.
Net profit climbed 18.67% to Rs 305 crore in the January-March quarter compared to Rs 257 crore profit in the corresponding period a year ago. In the December quarter, profit stood at Rs 333 crore, implying a fall of 8.40% on a quarter on quarter basis.
Revenue from operations rose 3.65% to Rs 2240 crore in Q4 from Rs 2161 crore in the year ago period. Revenue in the December quarter stood at Rs 2470 crore.
EBITDA climbed 14% to Rs 393 crore in Q4 against Rs 346 crore in the corresponding quarter of the previous fiscal.
Earnings per share in the last fiscal rose to Rs 10.08 against Rs 9.50 for the fiscal ended March 2022.
Amnish Aggarwal - Head of Research, Prabhudas Lilladher said Marico's numbers were largely in-line with estimates. He assigned a hold call to the stock post Q4 and annual earnings.
"The company saw strong pick up in volumes given price stability and conversion from loose to branded products. Domestic volumes at 5% grew ahead of the industry helped by price corrections in key packs. International business reported mid-teens constant currency growth at 16%. We believe the company should continue to see favourable RM basket in the near term. We have a HOLD rating on the stock with a target price of Rs 523," added Aggarwal.
Commenting on the business outlook for FY 24, the consumer goods firm said, "In the domestic business, we will drive volume led growth and market share gains across our portfolios, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building."
The firm expects a gradual uptick in revenue growth as pricing interventions come into the base in the first half of FY24. The International business has consistently been delivering a resilient performance despite macroeconomic challenges in some of the geographies.
"We are confident of maintaining the double-digit growth momentum in FY24. We expect gross margin to expand by 200-250 bps and operating margin to move up by more than 100 bps in FY24 with easing RM prices, aggressive cost management and a more favorable portfolio mix. We will continue to strengthen the equity of the core and new franchises and drive long-term growth by adequately investing in brand building and market development," it added.
On the operating environment, the firm said, “Retail inflation is on a moderating path – aided by lower food inflation. Overall FMCG volume growth is in positive territory after 5 quarters. Foods continues to drive growth, while HPC remains muted”
In a related development, the board of the FMCG major announced that it has re-appointed Saugata Gupta as Managing Director and Chief Executive Officer for a period of two years with effect from 1 April, 2024 to 31 March, 2026.
Meanwhile, the stock ended 0.80% lower at Rs 493.25 on BSE before the earnings announcement.