Marico gained 2.76% to Rs 520.20 after the FMCG major said that its India business marked a slight improvement over the preceding quarter to post a mid-single-digit volume growth in Q3 FY23.
During the quarter, the sector witnessed some improvement in demand, which was more visible in specific categories buoyed by the festive fervour and oncoming winter season. Urban and premium categories maintained their steady pace of growth. However, recovery in rural demand was not as discernible as retail inflation stayed at elevated levels.
The easing of commodity inflation, higher crop realizations, ongoing government interventions and likely stimulus from the upcoming Union Budget augurs well for the sector in the forthcoming calendar year, said the company.
Marico's Parachute Coconut Oil posted low single-digit volume growth after a visible recovery in December as consumer pricing stabilised with copra prices firming up in the off-season.
Meanwhile, Saffola franchise grew in double digits in value terms with Saffola Oils posting low teen volume growth and Foods continuing its strong run towards the stated revenue aspiration.
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Value Added Hair Oils had a subdued quarter, which was mainly a reflection of tepid sentiment in rural and mass personal care categories. Premium Personal Care, on the other hand, witnessed double-digit growth in line with sectoral trends.
The International business continued its healthy growth momentum with high single-digit constant currency growth, even while contending with implications of currency depreciation and high inflation in key markets.
The company said that Bangladesh held steady despite challenging macros, while the other markets performed well. Furthering its strategy of increasing the total addressable market in key markets, the acquisition of female personal care brands, Puritde Prence and iv, will provide a fillip to the Vietnam business, it added.
Consolidated revenue in the quarter grew in low single digits on a year-on-year basis.
Marico stated, As we witnessed some semblance of stability in key input prices and consumer pricing across key franchises, gross and operating margins are expected to improve both on a sequential and year-on year basis. In view of the lower revenue growth, we expect a modest growth in operating profit.
The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scaling up new engines of growth, the FMCG frim said.
Marico is one of India's leading consumer products companies in the global beauty and wellness space. Its portfolio includes brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo.
The FMCG company reported 3% fall in consolidated net profit to Rs 301 crore despite a 3% rise in revenue from operations to Rs 2,496 crore in Q2 FY23 over Q2 FY22. The company recorded a volume growth of 3% in the domestic business and constant currency growth of 11% in the International business.
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