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Marico Q2 PAT seen up 10.4% at Rs 79 cr
FMCG major Marico is likely to report a profit after tax of Rs 79 crore in the second quarter of FY12, a growth of 10.4% as compared to Rs 71.56 crore in the corresponding quarter of last fiscal
FMCG major Marico is likely to report a profit after tax of Rs 79 crore in the second quarter of FY12, a growth of 10.4% as compared to Rs 71.56 crore in the corresponding quarter of last fiscal.
Sales are seen going up by 27.5% to Rs 994 crore from Rs 778.8 crore during the same period.
Operating profit margin is expected to be at 11.6% in the July-September quarter of FY12 versus 12.7% in a year ago period.
Expectations
* Q2 being watched closely after profit warning in September
* Low on the stock after the profit warning was around Rs 139 (Slight recovery since then)
Profit warning was
* Margins, profitability will be under pressure
* Pressure due to high raw material costs
* Company taking a conscious decision not to hike prices
* No price hikes to protect volume growth
So need to watch
* Extent of decline in EBITDA margins
* Volume growth in domestic business, particularly Parachute
* Reduction in ASP and consequent cushioning of EBITDA
* Impact on international business due to turmoil in Egypt and Middle East
Raw material pressure
* Key raw material copra is down 10% sequentially, but is still up over 50% YoY
* Most of the other key agri inputs are still at a life high
