Marico sees single-digit volume growth on rural demand; crude oil a 'potential uncertainty'

The focus at Marico will remain on revenue forecast while staying watchful on the margin front in the second half, the company added in its business update.

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FMCG major Marico has improved its realisation in the domestic business with a mid-single digit volume growth in September quarter, as rural demand outperformed urban on a year-on-year basis for a third quarter in a row, the company said on October 2.

Marico added that it expects a double-digit revenue growth for the year, and will closely watch inflation in copra prices, duty hike in vegetable oils and potential uncertainty in crude prices in light of geo-political tensions.

The focus at Marico will remain on revenue forecast while staying watchful on the margin front in the second half, the company added in its business update.

The company said its Value Added Hair Oils business saw a subdued quarter as competition at the bottom of the pyramid segment increased, but demand outlook seems to be higher.

"Parachute Coconut Oil posted close to mid-single digit volume growth, partially impacted by ml-age reduction in one of the key price-point packs, in lieu of a price increase."

Marico had during the June quarter earnings said that it is confident of volume trends to keep improving, helped by by stable inflation, a healthy monsoon, and Centre's allocation towards the rural economy.

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The Saffola brand posted low single-digit revenue growth, a sign of stable input and consumer pricing, with the company saying the pricing cycle has turned 'slightly favourable after eight quarters'.