Mumbai: Marico Ltd, a Mumbai-based fast moving consumer products company, reported a 32.7% increase in net profit for the first quarter ended June. The performance was based on growth across all products’ categories it has a presence in, the company said. Net profit grew to Rs40.18 crore from Rs30.27 crore a year ago, while sales rose 25.6% to Rs 469.83 crore from Rs373.85 crore in the aforesaid period.
Marico’s flagship brand, Parachute hair oil, grew 20%, while Saffola, an edible oil brand, grew 28% in the same period. The skincare solutions business of Kaya Skin Care, a Marico subsidiary, grew 31%, reporting Rs21 crore turnover.
“We will be opening around eight new Kaya clinics in the next quarter with an investment of Rs1.5 crore on each clinic,” said Vinod Kamath, chief, finance & IT, Marico. Marico’s international business grew 82% boosted by recently acquired brands, Fiancee and HairCode in Egypt.
“Organic growth was 20%, inorganic growth was 6%,” added Kamath.
The company’s spends on staff grew 62.38% on a year-on-year basis to Rs34.15 crore due to the implementation of the employee stock option scheme (Esop). Seventy senior managers have profited from this, even as the company spend an equivalent of 1.32% of the current paid-up equity capital of the company on this.
Analysts said that the performance was in line with expectations. “We expect the company to grow faster in the next quarter because it has increased the prices of some of its products and this should get reflected in the next quarter,” said Anand Shah, an analyst with Angel Broking, a Mumbai-based brokerage firm.
Marico’s shares closed at Rs55.15, down 0.18% on the Bombay Stock Exchange.