Marico Reports 14% Increase in Q4 Net Profit to Rs 391 Crore

Marico Ltd Reports 14% Rise in Consolidated Net Profit for Q4

Marico Ltd, a leading parachute maker, has announced a 14 per cent rise in consolidated net profit at Rs 391 crore in the quarter ended March-31, up from Rs 343 crore reported in the same quarter last year. However, on a sequential basis, net profit fell 12.5 per cent from Rs 447 crore reported in the third quarter.

Revenue Growth

Consolidated revenue from operations rose 22 per cent to Rs 3,333 crore in Q4, up from Rs 2,730 crore reported last year. On a sequential basis, revenue fell from Rs 3,537 crore reported in Q3. Despite the decline, the company remains optimistic about a gradual improvement in consumption over the coming quarters, while monitoring potential macroeconomic implications arising from evolving geopolitical developments in the Middle East.

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Financial Performance

EBITDA margins declined more than 1 percentage point at 15.63 per cent in Q4, due to high inflation in vegetable oils and other crude-linked inputs. However, copra prices have dropped by approximately 35 per cent from peak levels. On a standalone basis, revenue surged 17 per cent to Rs 2,205 crore in the fourth quarter, while net profit jumped 6 per cent to Rs 336 crore. On a sequential basis, both revenue and profit declined 10.4 per cent and 23 per cent respectively.

Segment Performance

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The company's flagship brand Parachute reported a 1 per cent volume decline after implementing price reductions in the quarter. However, the category still reported growth in single-digits, attributed to the brand's pricing inelasticity and enduring consumer loyalty. Value-Added Hair Oils gained approximately 100 bps in value market share on a MAT basis, driven by expanded reach under project SETU and improved affordability after GST rate rationalization. Saffola Edible Oils posted 8 per cent revenue growth during the quarter, driven by mid-single digit volume growth.

Portfolio Performance

Marico's Foods portfolio registered 16 per cent YoY growth and exited the year at Rs 1,000+ crores in revenues. The company's portfolio comprising Premium Hair Nourishment, Male Grooming, and Skin Care closed the year at Rs 350 Crores in revenues.

The company remains optimistic about a gradual improvement in consumption over the coming quarters, while monitoring potential macroeconomic implications arising from evolving geopolitical developments in the Middle East.