Marico surges 8%, hits new high on strong March quarter results

Shares of Marico hit a new high of Rs 442.95, surging 8 per cent on the Bombay Stock Exchange, in the intra-day trade after the company posted a 25 per cent volume growth with healthy growth in Parachute & value added hair oils (VAHO) on the back of a low base quarter. Saffola and foods business also continued the growth momentum. The stock of the personal products surpassed its previous high of Rs 439 touched on February 24.

In January-March 2021 quarter (Q4 FY - 21), Marico's revenue swelled by 34.5 per cent to Rs 2012 crores led by a 25 per cent volume growth in India business and a 23 per cent growth in international business (constant currency¹). Operating profit also increased 13.1 per cent to Rs 319 crores while operating profit margins contracted 300 basis points (BPs) to 15.9 per cent during the quarter.

Led by strong growth in operating profit, net profit witnessed a growth of 12.9 per cent to Rs 227 crores. Gross margin was down 517 base points owing to the severe input cost pressure, as pricing interventions in the core portfolios were not commensurate to the inflation.

Source: Business Standard

Jargons

1. Constant currencies are exchange rates used to eliminate the effect of fluctuations when calculating financial performance numbers for publication in financial statements. Companies with overseas operations often supplement mandatory, reported figures with optional, constant currency numbers.