Mumbai: Personal care products maker Marico’s consolidated quarterly net profit rose 42%, substantially beating street estimates on volumes growth and the one-time amount it received from the sale of edible oil brand ‘Sweekar´.
Marico on Monday reported a consolidated net profit of Rs 71.6 crore for January-March on net sales of Rs 747 crore.
A Reuters’ poll of 19 brokerages had forecast a consolidated quarterly net profit of Rs 60.3 crore on net sales of Rs 733 crore for Marico.
During the quarter, Marico received Rs 50 crore from Cargill India for sale of edible oil brand ‘Sweekar´, it said in a statement.
“Our top-line has grown at 18% in FY11 while PAT (profit after tax) rose by 24 %. Although the environment is of inflation, we have seen robust volumes growth for the group,” Vijay Subramaniam, chief executive, international business, Marico, told Reuters by telephone.
The company, however, expects inflation to ease in the current year, he said.
Headline inflation in India surged to nearly 9% in March, far above forecasts, on higher fuel and manufacturing prices.
“When the (raw material) prices went up, obviously some of the increases we passed on and some of them the company did absorb. Typically, the reverse should be true when prices ease off,” he said.
“In case of international business, there is a headroom for a healthy double-digit growth... however I must point out that the entire environment in the Middle-East and North African region continues to be uncertain,” he said.
At 2:22 p.m. shares of Marico were trading at Rs 137.05 , down 2.56% in the Bombay Stock Exchange.