Marico Q2 results: Net profit up 17% to Rs 360 crore, revenue flat

Marico reported revenue of Rs 2,496 crore in the year-ago quarter.

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Marico Ltd on October 30 reported a consolidated net profit of Rs 360 crore for the September quarter of FY24, registering a growth of 17 percent from the same quarter of the previous financial year.

Revenue from operations fell marginally YoY to Rs 2,476 crore which was at  Rs 2,496 crore in the year-ago quarter, the company said in a regulatory filing.

EBITDA for the company stood at Rs 497 crore, up 15 percent YoY in the July-to-September quarter.

Marico reported a 3 percent YoY growth in volumes in the same period.

The oil company's Parachute Coconut Oil business fell 1 percent in value terms and increased 1 percent in volume terms. Revenue from Saffola business fell 12 percent YoY in Q2FY24. Value Added Hair Oils posted a weak revenue growth of 1 percent YoY in the same period which reflected a slower recovery in mass personal care categories.

Gross margin expanded by 685 basis points YoY and 50 basis points sequentially to reach its highest level in 26 quarters, owing to softer input costs, said the company in a press release.

Marico has announced an interim dividend of Rs 3 per share.

The company launched Livon Style Pro Range and Parachute Advanced Body Wash and Shower Gel Range in the July-to-September quarter.

"The domestic business has delivered 3 percent volume growth in H1 amidst a challenging operating environment with sluggish demand sentiment in rural. We continue to draw confidence from the resilient offtake growth, market share and penetration gains posted by our key franchises and expect a gradual improvement in demand sentiment to reflect in the performance of domestic business in the second half of the year," said the company.

Amnish Aggarwal, head of research at Prabhudas Lilladher says that higher food inflation and uneven rainfall have led to slower than expected recovery of rural markets, although packaged food has performed well. He further says that gross margins have improved and are further expected to improve given softening of input prices.

"We believe that with stable inflation, upcoming festive season and price cut implemented across category will lead to gradual recovery in volumes of rural market," said Aggarwal.