Marico shares surged by nearly 10 per cent on Tuesday after the consumer goods giant announced its earnings report for the quarter ending March. The FMCG company recorded a consolidated net profit of Rs 320 crore, up by nearly 5 per cent as compared to the corresponding quarter of the previous year.
However, revenue from operations increased by just 1.7 per cent year-on-year, at Rs 2,278 crore in the quarter under review.
At 1:40 pm, the shares of the company were trading at Rs 579 share price, up by 9.28 per cent on the National Stock Exchange.
EBITDA (Earnings before increased by 12.5 per cent to Rs 442 crore in the same quarter. Domestic revenue remained "flattish" at Rs 1,680 crore. Despite this, offtakes in crucial segments was robust, with 75 per cent of the business either gaining or maintaining market share and 100 per cent either gaining or maintaining penetration on a MAT basis. Advertising and promotional spending, on the other hand, rose by 8 per cent year-on-year.
"Amidst the backdrop of improving macro-indicators and forecast of a normal monsoon, we expect a gradual uptick in the growth of our core categories through the ongoing initiatives to enhance the profitability of our General Trade (GT) channel partners and transformative expansion in our direct reach footprint with the roll out of Project SETU," the company stated in an investor presentation. "We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organised retail and E-Commerce channels."
On an annual basis, the shares of Marico have delivered a return of a mere 9.8 per cent on the NSE.
