FMCG major Marico's profit in April-June quarter is likely to increase 12 percent to Rs 270 crore and revenue may rise 5.3 percent to Rs 1,877 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.
Analysts say sluggish revenue growth may be due to price cuts announced by the company. It reduced prices of Parachute oil by around 16-18 percent.
Domestic volume growth is expected to be 6-8 percent while volume growth in Parachute may be 6-7 percent in June quarter against 8 percent in year-ago period, Saffola at 9-10 percent against 4 percent and value added hair oil at 8-9 percent against 14 percent Yoy.
Analysts expect international business (that contributes 20 percent of revenue) to grow 10 percent YoY led by Bangladesh.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is seen rising 18 percent year-on-year to Rs 384 crore, and margin may expand 230 basis points to 20.5 percent on lower copra prices. Gross margin is expected to expand by 450-550 basis points.
Copra prices declined 42 percent YoY & 9.5 percent QoQ.
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