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Marico stock zooms 10% on strong Q4 earnings

The company reported a consolidated net profit of Rs 227 crore for the quarter ended March 31

twitter-logoBusinessToday.In | May 3, 2021 | Updated 17:51 IST
The FMCG major has delivered 55 per cent returns in the last 12 months.
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Share of Marico hit a 52 week high of Rs 452.80 rising 10% on BSE after the company posted robust volume growth of 25 per cent in the domestic business. The stock ended in green at Rs 445.40, up 8.20 per cent on the BSE. The FMCG major has delivered 55 per cent returns in the last 12 months.

The company reported a consolidated net profit of Rs 227 crore for the quarter ended March 31. Profit in the year-ago period stood at Rs 199 crore.

Revenue from operations increased 34.5 per cent to Rs 2012 crore for the quarter ended March 2021, backed by robust volume growth of 25 per cent in the domestic business and constant currency growth of 23 per cent in the international business.

"The hair oils categories are expected to witness strong growth with a mix of volumes and price hikes. It is also clear that Marico is looking to gain volumes and market share by not tinkering with prices too frequently," said  ICICI Securities.

The company informed that the foods portfolio grew 134 per cent in value terms in Q4 and crossed Rs 300 cr in turnover in FY21. Parachute Rigids grew 29 per cent in volumes, albeit on a low base, undeterred by price hikes and pullback of consumer offers to counter a part of the input cost-push, it added.

Value-added hair oils grew 22 per cent in volumes with all of the key brands clocking double-digit growth. The company estimates steady market share gains in the overall hair oils category.

In the International business, Bangladesh clocked 20 per cent constant currency growth. South East Asia also reverted to positive territory with 13 per cent constant currency growth. MENA and South Africa also gained on a low base.

"In FY20, we expanded our rural stockist network by 25 per cent. While we took a pause in FY21 due to COVID disruptions, we have restarted the task of further expanding our rural network by another 25 per cent over the next 2 years," the company said.

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