Consumer products group Marico on Wednesday reported a 30 per cent rise in its net profit for the first quarter (Q1) of the current fiscal.
According to the company, its net profit for the quarter under review stood at Rs.188.29 crore from Rs.144.39 crore for the corresponding quarter of last fiscal.
Total income during the period under review increased by 9.17 percent to Rs.1,487.42 crore from Rs.1,362.47 crore for the quarter ended June 30, 2014.
“We have had a satisfactory quarter, though with a few misses in the India and international geographies,” said Saugata Gupta, managing director and chief executive, Marico.
Mr. Gupta informed that while growth in rural India is intact, the company is closely tracking the monsoon.
The company is also expecting urban consumption to recover in the second half of this year, Mr. Gupta said.
“We believe that significant progress in our focus transformation areas and improved macro factors will drive better volume growths in the second half of the year,” Mr. Gupta added.
In terms of consolidated results, the company’s net profit grew by 28.36 per cent to Rs.237.83 crore during the quarter ended June 30, 2015 from Rs.185.27 crore for the corresponding period of last fiscal.
The consolidated total income of the company increased by 10.56 per cent to Rs.1,814.91 crore from Rs.1,641.45 crore for the quarter ended June 30, 2014.
The company’s medium term guidance revels that it expects urban consumption to recover gradually. The direct distribution initiative is expected to fuel volume growths in the metro markets.
“The company will strive to report volume recovery and maintain medium-term growth rates in the range of 8-10 percent by growing the core and rapidly scaling new products,” the statement said.
“Operating margin is expected to be maintained in a band of 15-16 per cent. In the current year, however, given the benign raw material price scenario, the margins may expand to circa 17 per cent levels.”
The company’s scrip at the Bombay Stock Exchange (BSE) closed 0.45 per cent down at Rs.440.20 from its previous close of Rs.422.20 per equity share.
