Parachute and Saffola maker Marico says almost all of its products are back in demand – more importantly, the recovery is in rural India – About Your Online Magazine


FMCG Firm Marico Ltd on Wednesday reported a 13.04 percent increase in consolidated net profit to Rs 312 crore for the quarter ended December 2020. The company had a net profit of Rs 276 crore in the quarter from October to December last year. .

Revenue from the company’s operations rose 16.33 percent to Rs 2,122 crore during the quarter under review, compared to Rs 1,824 crore in the corresponding period of the previous fiscal year, said Marico in a BSE filing.

Marico said that in the third quarter of fiscal year 21, operations revenue grew due to a strong growth in the domestic volume of 15% and a steady growth of the currency of 8% in international business.

In India’s business, the company has witnessed robust demand trends in more than 95 percent of its portfolio amid steady improvement in consumer confidence and a declining COVID-19 chart, the company said.

“Traditional commerce led growth … The company also continued to operate with reduced levels of distributor stock. Among alternative channels, e-commerce witnessed increased growth and modern commerce also recovered sequentially to end stagnant in a annual basis, “he said.

The main FMCG said during the quarter that, as the main raw materials witnessed inflationary trends, the company increased effective consumer prices in selected portfolios, while continuing to absorb the cost pressure to some extent.

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Saugata Gupta, MD and CEO of Marico, said the company had an excellent quarter, with very healthy growth both in India and in international business.

“With the main franchises showing strength and new bets on food also showing a good trend, we expect the domestic business to deliver well ahead of medium-term aspirations in the coming quarters. The international business is also expected to maintain stable growth in the coming quarters.,” he said.

Gupta said that despite a challenging input costs scenario, the company achieved a resilient margin performance based on focused spending and aggressive cost control.

In the medium term, the company intends to increase the core and build new dimension franchises through premiumisation, food and digital brands “, he added.

Marico said that given the moderate demand in the hygiene category after the initial increase, the company consciously withdrew its investments and moved out of this segment.

Marico’s portfolio of brands includes Parachute, Saffola, Hair & Care, Nihar Naturals, Livon, Set Wet, Mediker, Revive and Beardo.

Marico Ltd shares rose 0.52 percent to end at Rs 412.50 each on BSE. SVK MKJ

Paula Fonseca