Marico Q2 net profit surges 17% to Rs 253 crore, but slowdown affects domestic business
Marico Q2 results: Consolidated revenue from operations fell marginally to Rs 1,829 crore in Q2FY20 as against Rs 1,837 crore in Q2FY19, with an underlying domestic volume growth of 1 per cent and constant currency growth of 9 per cent in the international business
- Oct 25, 2019,
- Updated Oct 25, 2019 5:18 PM IST
Homegrown FMCG major Marico on Friday reported 17 per cent year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 253 crore for the second quarter ended September 30, 2019, aided by improvement in operating margin and growth in international business.
"The company had reported consolidated net profit of Rs 216 crore in the corresponding period of fiscal 2018-19," Marico said in a filing to the Bombay Stock Exchange.
Consolidated revenue from operations fell marginally to Rs 1,829 crore in Q2FY20 as against Rs 1,837 crore in Q2FY19, with an underlying domestic volume growth of 1 per cent and constant currency growth of 9 per cent in the international business.
"The company had a soft second quarter in the face of a challenging liquidity and consumption environment in the domestic market, especially in rural, while the international business provided some respite on the back of a robust performance in Bangladesh," it said.
The company, which sells brands like Parachute Coconut Oil and Saffola, reported 16 per cent Y-o-Y growth in earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 353 crore. EBITDA margin expanded by 270 basis points to 19.3 per cent during Q2FY20, "as the company actively invested behind capability and brand building during the quarter".
Homegrown FMCG major Marico on Friday reported 17 per cent year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 253 crore for the second quarter ended September 30, 2019, aided by improvement in operating margin and growth in international business.
"The company had reported consolidated net profit of Rs 216 crore in the corresponding period of fiscal 2018-19," Marico said in a filing to the Bombay Stock Exchange.
Consolidated revenue from operations fell marginally to Rs 1,829 crore in Q2FY20 as against Rs 1,837 crore in Q2FY19, with an underlying domestic volume growth of 1 per cent and constant currency growth of 9 per cent in the international business.
"The company had a soft second quarter in the face of a challenging liquidity and consumption environment in the domestic market, especially in rural, while the international business provided some respite on the back of a robust performance in Bangladesh," it said.
The company, which sells brands like Parachute Coconut Oil and Saffola, reported 16 per cent Y-o-Y growth in earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 353 crore. EBITDA margin expanded by 270 basis points to 19.3 per cent during Q2FY20, "as the company actively invested behind capability and brand building during the quarter".