New Delhi, May 2 (PTI) FMCG firm Marico today reported a 25.50 per cent increase in consolidated net profit at Rs 170.91 crore for the fourth quarter ended March 31, 2017, led by volume growth in the domestic market.
The company had reported a net profit of Rs 136.18 crore in the January-March quarter a year-ago, Marico said in a BSE filing.
Marico’s consolidated net sales during the quarter under review stood at Rs 1,315.17 crore, up 2.24 per cent, as against Rs 1,286.33 crore for the corresponding quarter of last fiscal.
“During the fourth quarter of FY17, India Business delivered a healthy 10 per cent volume growth. The company witnessed normalcy returning after the demonetisation in third quarter of FY17,” Marico said in a statement.
Its total expenses were down 1.55 per cent to Rs 1,090.01 crore as against Rs 1,107.21 crore.
During the period, Marico’s domestic sales were up 5.91 per cent to Rs 1,035.24 crore as against Rs 977.47 crore for the corresponding quarter of 2015-16.
“The healthy volume growth of 10 per cent in fourth quarter was backed by strong recovery in key categories of Parachute Rigid Coconut Oil and VAHO while Saffola continued its growth momentum,” Marico said.
However, revenue from international business in the fourth quarter was down 8.36 per cent to Rs 286.91 crore as against Rs 313.11 crore in FY16.
“The severe macro-economic headwinds in the MENA region (Middle East and North Africa) have led to the decline in the overall international business this quarter,” it added.
For the year ended March 31, 2017, Marico reported net profit of Rs 810.97 crore on consolidated basis, up 12.11 per cent, as against Rs 723.33 crore in 2015-16.
However, Marico’s net sales was down 1.60 per cent to Rs 5,918.03 crore as against Rs 6,014.80 crore in 2015-16.
Commenting on the outlook, Marico MD and CEO Saugata Gupta said due to the upcoming GST, it will bring in near term uncertainty that may disrupt trade in the first half of the ongoing fiscal although it will be beneficial for organised players in the long run.
The company would continue to invest in the core and the new products this fiscal.
“Our operating margins which are very healthy may go down; we believe that focus on franchise expansion with threshold margins will stand us in good stead as we write a long term profitable growth story,” he added.
Shares of Marico Ltd ended 1.30 per cent up at Rs 319 on BSE.
This is published unedited from the PTI feed.