Marico Q1 net profit dips 6% to Rs 365 cr; sales up 31% to Rs 2,525 cr

Topics Marico | Q1 results | FMCGs

FMCG firm Marico Ltd on Friday reported a 5.92 per cent decline in consolidated net profit at Rs 365 crore for the quarter ended June 2021.

The company had posted a net profit of Rs 388 crore in the April-June period a year ago, Marico said in a BSE filing.

However, revenue from operations of the Mumbai-based firm rose 31.16 per cent to Rs 2,525 crore, as against Rs 1,925 crore in the corresponding quarter of the previous year.

According to the company, its profit after tax was down "due to exceptional gains in the base quarter."

"In Q1FY22, Revenue from Operations grew by 31 per cent YoY to Rs 2,525 crores with underlying volume growth of 21 per cent in the domestic business and constant currency growth of 21 per cent in the international business," Marcio said in a post-earnings statement.

Total expenses were at Rs 2,085 crore, up 38.90 per cent from Rs 1,501 crore earlier. Domestic sales climbed 34.59 per cent to Rs 1,992 crore compared to Rs 1,480 crore in Q1 FY21.

"In India, we witnessed positivity in the demand sentiment until late April, when stricter mobility restrictions were once again imposed in various states in response to the rising severity of the second COVID wave," it said.

Unlike the first wave, the pandemic affected deeper pockets of the country, but business was not as disrupted as in the last year given that supply chains were able to weather localised and staggered lockdowns and retail stores operated for certain number of hours during the day, it added.

"Traditional trade continued to perform well with rural and urban growing in tandem. E-Commerce maintained its accelerated growth trajectory, while Modern Trade could only recover partially as lockdown-like curbs were back into effect in various states. CSD grew on a low base," it said.

Revenue from the international business rose 19.77 per cent to Rs 533 crore as against Rs 445 crore a year earlier.

"The International business posted a strong broad-based recovery relative to the varying levels of impact in each of the markets in the base quarter. This was despite signs of moderation in demand witnessed due to the resurgence of COVID in Bangladesh and Vietnam towards the end of the quarter," it added.

In a separate filing, the company said its board on Friday approved the appointment of Milind Barve as additional director (independent) for a term of five years with effect from August 2, 2021.

It has also noted the resignations of K B S Anand and Sanjay Dube as independent directors of the company.

Shares of Marico Ltd on Friday settled at Rs 546.35, up 3.53 per cent from the previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel