Marico Ltd - Quarterly Update - Q4 FY23

During the quarter, the sector continued to witness gradual recovery with year-on-year volume trends improving in each quarter. While urban and premium categories were stable, easing of broader commodity inflation bodes well for overall consumption trends, especially in rural markets. While a more visible and sustained recovery in FMCG demand is anticipated in the coming quarters based on a variety of improving macro indicators, a healthy monsoon season will be critical for the same to materialise.

In the given context, the India business witnessed some improvement in year-on year volume growth vis-à-vis the preceding quarters and stayed in the mid-single digit zone. Parachute Coconut Oil posted a strong high single-digit volume growth, aided by stable consumer pricing while copra prices remained steady through the quarter. Value Added Hair Oils touched double-digit value growth. Category growth evidently consolidated on a low base amidst the prevailing muted sentiment in rural and mass personal care categories. Saffola Oils remained stable sequentially but dipped on a year-on-year basis owing to a high absolute volume base. Foods continued to scale up well. Premium Personal Care also grew in double-digits and the Digital First portfolio continued to maintain its healthy run rate.

The International Business maintained its stellar growth trajectory as it posted mid-teen constant currency growth. Each of the markets exhibited resilience despite a challenging global macro environment and currency headwinds in certain markets.

Consolidated revenue in the quarter grew in low single digits on a year-on-year basis.

Among key inputs, copra prices remained steady in a favourable zone and edible oils resumed a downtrend, while crude derivatives remained firm. As a result of a moderating RM basket and improving portfolio mix, gross margin is expected to expand and drive reasonable growth in operating profit on a year-on year basis.

The Company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scaling up new engines of growth.

This update seeks to provide an overall summary of the operating performance and demand trends witnessed during the quarter ended 31st March, 2023. A detailed Information Update will follow this once the Board approves the financial results for Q4 FY23.

Shares of Marico Limited was last trading in BSE at Rs. 480.40 as compared to the previous close of Rs. 479.70. The total number of shares traded during the day was 9642 in over 1105 trades.

The stock hit an intraday high of Rs. 481.85 and intraday low of 475.85. The net turnover during the day was Rs. 4623045.00.

Source : Equity Bulls

Keywords

Marico INE196A01026 QuarterlyUpdate Q4FY23