Marico Q3 results: Profit up 13% at Rs 312 crore, India revenue rises 18%

Marico has reported 13.04 per cent year-on-year rise in consolidated net profit at Rs 312 crore for the third quarter ended December 31, 2020. The consumer goods company, which owns brands such as Parachute, Saffola, Nihar Naturals, Set Wet, Livon, had posted consolidated net profit of Rs 276 crore in the October-December quarter of 2019, Marico said in a regulatory filing.

Revenue from operations jumped by 16.33 per cent to Rs 2,122 crore as compared to Rs 1,824 crore in the corresponding period of the previous fiscal, on the back of a strong domestic volume growth of 15 per cent and a constant currency growth of 8 per cent in the international business.

In the India business, the company witnessed robust demand trends across more than 95 per cent of its portfolio amidst steadily improving consumer confidence and a declining COVID-19 graph. The domestic business delivered a turnover of Rs 1,627 crore, up 18 per cent on a YoY basis, on the back of a strong underlying volume growth of 15 per cent. The operating margin was lower YoY at 21.6 per cent in Q3FY21 versus 23.2 per cent in Q3FY20, owing to the residual impact of inflationary input costs after the company increased effective consumer prices in select portfolios, rationalised advertising spends in discretionary categories and realised accruals of annualised targeted cost saving initiatives of Rs 150 crore in the current year.

"Traditional trade led the growth as the company took concerted efforts to drive excellence in execution. The Company also continued to operate at reduced distributor inventory levels. Among the alternate channels, e-commerce witnessed augmented growth and Modern Trade also recovered sequentially to end flattish on a year-on-year basis," it said.

The EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) grew 11 per cent YoY to Rs 413 crore, driven by cost saving initiatives and rationalised advertising spends in discretionary categories. The company delivered an EBITDA margin of 19.5 per cent, a moderate dip of 90 bps year-on-year.  

Following Q3 results, shares of Marico ended Wednesday's trade at Rs 412.50, up 0.52 per cent, against previous closing price of Rs 410.35.

Also Read: HUL Q3 results: Profit rises 19% to Rs 1,921 crore, revenue up 20%