Marico share price closed lower in trade today after the consumer goods company in an update for the third quarter said consumption trends fell below expectations amid soft demand for products.
Share price of Marico fell 2.79% intra day to Rs 336.20 against previous close of Rs 345.85 on BSE. Marico stock closed 2.53% or 8.75 points lower at Rs 337.10 on BSE. The large cap stock has lost 10% in one year. Its market capitalisation stood at Rs 43,517 crore at the end of market hours today.
The firm which manufactures beauty and wellness products saw growth across personal care remaining under pressure. However, foods and allied categories fared relatively better, the firm said in a communication to bourses. Growth in modern trade and ecommerce also slowed down, partly due to specific price management measures taken in these channels to counter inter-channel conflict.
The effects of economic slowdown leading to a slump in demand were also felt when the firm announced its earnings for the second quarter ended September 2019.
"The company had a soft second quarter in the face of a challenging liquidity and consumption environment in the domestic market, especially in rural, while the international business provided some respite on the back of a robust performance in Bangladesh," Marico said in its Q2 earnings release.
The homegrown FMCG major reported a 17 per cent year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 253 crore for the second quarter ended September 30, 2019, aided by improvement in operating margin and growth in international business.
It reported consolidated net profit of Rs 216 crore in the corresponding period of fiscal 2018-19. Consolidated revenue from operations fell marginally to Rs 1,829 crore in Q2FY20 as against Rs 1,837 crore in Q2FY19, with an underlying domestic volume growth of 1 per cent and constant currency growth of 9 per cent in the international business.