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Last Updated : Apr 29, 2016 12:16 PM IST | Source: Moneycontrol.com

Marico Q4 net seen up 19%, growth likely at cost of price cuts

Analysts polled by CNBC-TV18 feel domestic business may see 6-7 percent growth while international business is likely to see 9-10 percent jump. However, growth may be at the cost of price cuts and promotions. Steep cuts of 9-25 percent were taken across stock keeping unit (SKUs).


Marico is likely to report net profit at Rs 131 crore in March quarter, up 19 percent from Rs 110 crore in corresponding quarter last fiscal. During the period, revenue is seen rising 7 percent at Rs 1312 crore compared to Rs 1226 crore on annual basis.


According to a CNBC-TV18 poll, EBITDA is seen up 19.9 percent at Rs 205 crore in Q4 versus Rs 171 crore while EBITDA margins may stand at 15.6 percent versus 13.9 percent year-on-year.


Analysts polled by CNBC-TV18 feel domestic business may see 6-7 percent growth while international business is likely to see 9-10 percent jump. However, growth may be at the cost of price cuts and promotions. Steep cuts of 9-25 percent were taken across stock keeping unit (SKUs).

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Overall volume growth of 10-13 percent (YoY) is seen. Parachute may see 5-8 percent (YoY) volume growth on base of 3 percent while Saffola volumes may grow by 15-20 percent (YoY) led by the activations it has executed in Saffola Active. Value added hair oil (VAHO) volume growth may be buoyant at 10-15 percent (YoY).

Gross margin in Q4 may expand by 400-500 basis points (bps) due to copra price correction. Gross margin expansion of 584 bps is seen due to drop in copra. Advertising and promotions (A&P) spends are expected to be 140 bps higher (YoY).

First Published on Apr 28, 2016 05:21 pm
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