Marico’s results were a miss on all estimates after it posted a 12 percent fall in its June quarter net profit at Rs 236 crore against Rs 268 crore posted during the same period last year.
The FMCG major also saw an almost 4 percent fall in its consolidated revenue for the quarter under review at Rs 1,692.4 crore against Rs 1,754.3 crore posted during the June quarter in 2016. The revenue dip could have been dragged by de-growth of 9 percent in its volumes.
The consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) too fell over 13 percent to Rs 324.3 crore. The company had posted operating revenue of Rs 374 crore in the same quarter last year, while the operating margin was also lower at 19.3 percent against 21.3 percent year on year.
The company attributed the volume fall to de-stocking effect in June due to goods and services tax. The company also said that the decline is attributable to steep pipeline correction.
On the other segments, it said that CSD business saw a decline of 15 percent in Q1, while copra prices increased over 60 percent year on year. The company further said that it held back price increase in Parachute rigid portfolio due to GST rollout.
Reacting to the results, the stock fell nearly 5 percent intraday on Tuesday as investors turned cautious on the stock.
At 14:09 hrs Marico was quoting at Rs 320.00, down Rs 13.55, or 4.06 percent on the BSE.
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